Market Newsdesk

July 26, 2021 4:52 pm

Root, Inc. Schedules Conference Call to Discuss Second Quarter 2021 Financial Results

COLUMBUS, Ohio, July 26, 2021 (GLOBE NEWSWIRE) — Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company, today announced its plans to host a conference call to discuss financial results for the second quarter of 2021 on Thursday, August 12, 2021, at 8:00 a.m. Eastern Time. The Company plans to release its second quarter 2021 results in the investor relations section of its website at ir.joinroot.com after the close of the financial markets on Wednesday, August 11, 2021.

Webcast and Conference Call Details

Date:	August 12, 2021
Time:	8:00 a.m. Eastern Time
Dial-in:	(800) 447-0521 (US and Canada)
	(847) 413-3238 (International)

Conference ID:	50201367
Webcast:	https://ir.joinroot.com/news-events/events

A replay of the webcast will be made available for on-demand viewing after the call on the Investor Relations page of the Company’s website at ir.joinroot.com.

About Root, Inc.

Root, Inc. is the parent company of Root Insurance Company. Root is a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience. Root’s mobile-first customer experience is designed to make insurance simple.

Contacts

Media:

Tom Kuhn
Director of Communications
[email protected]

Investor Relations:

Christine Patrick
VP, Investor Relations
[email protected]

Source: ROOT, INC.

July 26, 2021 4:48 pm

Cathay General Bancorp Announces Second Quarter 2021 Results

PR Newswire

LOS ANGELES, July 26, 2021 /PRNewswire/ — Cathay General Bancorp (the “Company”, “we”, “us”, or “our”) (Nasdaq: CATY), the holding company for Cathay Bank, today announced its unaudited financial results for the quarter ended June 30, 2021. The Company reported net income of $77.2 million, or $0.97 per share, for the second quarter of 2021.

FINANCIAL PERFORMANCE

	Three months ended
(unaudited)	June 30, 2021	March 31, 2021	June 30, 2020
Net income	$77.2 million	$73.4 million	$54.3 million
Basic earnings per common share	$0.98	$0.92	$0.68
Diluted earnings per common share	$0.97	$0.92	$0.68
Return on average assets	1.60%	1.57%	1.15%
Return on average total stockholders’ equity	12.53%	12.18%	9.31%
Efficiency ratio	43.41%	47.03%	44.82%

SECOND QUARTER HIGHLIGHTS

Total loans, excluding Paycheck Protection Program loans, increased by 3.4% annualized.
The net interest margin increased to 3.24% in the second quarter of 2021 from 3.20% in the first quarter of 2021 and 3.02% in second quarter of 2020.
Quarterly earnings per share increased 5.75% from first quarter of 2021 and 42.6% from same quarter in 2020.
Total deposits, excluding time deposits, increased for the quarter by $462.2 million, or 18.3% annualized.

“For the second quarter of 2021, total loans, excluding Paycheck Protection Program loans, increased by 3.4% annualized. Under our previously announced April 2021 stock repurchase program, we repurchased 1.5 million shares at an average cost of $41.46 per share, for a total of $63.5 million, during the second quarter,” commented Chang M. Liu, President and Chief Executive Officer of the Company.

SECOND QUARTER INCOME STATEMENT REVIEW

Net income for the quarter ended June 30, 2021, was $77.2 million, an increase of $22.9 million, or 42.2%, compared to net income of $54.3 million for the same quarter a year ago. Diluted earnings per share for the quarter ended June 30, 2021, was $0.97 per share compared to $0.68 per share for the same quarter a year ago.

Return on average stockholders’ equity was 12.53% and return on average assets was 1.60% for the quarter ended June 30, 2021, compared to a return on average stockholders’ equity of 9.31% and a return on average assets of 1.15% for the same quarter a year ago.

Net interest income before provision for credit losses

Net interest income before provision for credit losses increased $13.5 million, or 10.0%, to $148.0 million during the second quarter of 2021, compared to $134.5 million during the same quarter a year ago. The increase was due primarily to a decrease in interest expense from deposits, offset, in part, by a decrease in interest income from loans and securities.

The net interest margin was 3.24% for the second quarter of 2021 compared to 3.02% for the second quarter of 2020 and 3.20% for the first quarter of 2021.

For the second quarter of 2021, the yield on average interest-earning assets was 3.62%, the cost of funds on average interest-bearing liabilities was 0.53%, and the cost of interest-bearing deposits was 0.48%. In comparison, for the second quarter of 2020, the yield on average interest-earning assets was 3.91%, the cost of funds on average interest-bearing liabilities was 1.20%, and the cost of interest-bearing deposits was 1.16%. The decrease in the yield on average interest-earning assets resulted mainly from lower lending rates. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 3.09% for the quarter ended June 30, 2021, compared to 2.71% for the same quarter a year ago.

(Reversal)/provision for credit losses

As permitted under the Coronavirus, Aid, Relief and Economic Security Act (the “CARES Act”) and as extended by the Consolidated Appropriations Act, 2021, the Company adopted the Current Expected Credit Losses (“CECL”) methodology for estimated credit losses effective as of January 1, 2021. The Company recorded a reversal for credit losses of $9.0 million in the second quarter of 2021 compared to a reversal for credit losses of $13.6 million in the first quarter of 2021 and a $25.0 million provision for loan losses in the second quarter of 2020. The first and second quarter reversal for credit losses were primarily driven by the more favorable macroeconomic forecast in the two periods. As of June 30, 2021, the allowance for loan losses decreased $12.6 million to $131.3 million, or 0.84% of gross loans, compared to $145.1 million, or 0.93% of gross loans, as of March 31, 2021. The change in the allowance for loan losses included a $6.6 million reversal for loan losses for the second quarter of 2021, and $7.3 million in net charge-offs. In the second quarter of 2020, a provision for loan losses of $25.0 million was recorded under the incurred loss method, which includes management’s projection of the potential impacts from the COVID-19 pandemic at that time. The Company will continue to monitor the continuing impact of the COVID-19 pandemic on credit risks and losses, as well as on customer deposits and other liabilities and assets.

The following table sets forth the charge-offs and recoveries for the periods indicated:


	Three months ended			Six months ended June 30,
	June 30, 2021	March 31, 2021	June 30, 2020	2021	2020
	(In thousands) (Unaudited)
Charge-offs:
Commercial loans	$ 7,712	$ 9,138	$ 5,106	$ 16,850	$ 6,427
Total charge-offs	7,712	9,138	5,106	16,850	6,427
Recoveries:
Commercial loans	155	1,269	1,350	1,424	2,558
Real estate loans⁽¹⁾	303	111	163	413	325
Total recoveries	458	1,380	1,513	1,837	2,883
Net charge-offs	$ 7,254	$ 7,758	$ 3,593	$ 15,013	$ 3,544

(1) Real estate loans include commercial mortgage loans, residential mortgage loans, and equity lines.

Allowance for credit losses

The Company adopted CECL as of January 1, 2021 under a modified retrospective approach. The following table presents a rollforward of the allowance for credit losses:


Allowance for Credit Losses Rollforward	Allowance for Loan Losses	Reserve for Unfunded Loan Commitments	Total Allowance for Credit Losses
	(In thousands) (Unaudited)
Balance at December 31, 2020	$ 166,538	$ 5,880	$ 172,418
Impact of ASU 2016-13 adoption ^*	(1,560)	6,018	4,458
Balance, at January 1, 2021 ^*	164,978	11,898	176,876
Reversal of provision for credit losses	(12,110)	(1,448)	(13,558)
Charge-offs	(9,138)	—	(9,138)
Recoveries	1,380	—	1,380
Net charge-offs	(7,758)	—	(7,758)
Balance, at March 31, 2021 ^*	$ 145,110	$ 10,450	$ 155,560
Reversal of provision for credit losses	(6,600)	(2,400)	(9,000)
Charge-offs	(7,712)	—	(7,712)
Recoveries	458	—	458
Net charge-offs	(7,254)	—	(7,254)
Balance, at June 30, 2021	$ 131,256	$ 8,050	$ 139,306

^* Balance sheet amounts previously reported for the impact of the initial adoption of CECL have been corrected.
The correction decreased the allowance for loan losses by $2.2 million and increased the allowance for unfunded
credit commitments by $5.5 million and an after-tax decrease to opening retained earnings of $2.3 million.

Non-interest income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wire transfer fees, and other sources of fee income, was $12.6 million for the second quarter of 2021, a decrease of $3.0 million, or 19.2%, compared to $15.6 million for the second quarter of 2020. The decrease was primarily due to a $6.7 million decrease in net gains from equity securities offset, in part by, a $1.7 million increase in wealth management fees and commissions, a $1.3 million increase in bank owned life insurance benefit, and a $0.9 million increase in interest rate swap fair value, when compared to the same quarter a year ago.

Non-interest expense

Non-interest expense increased $2.4 million, or 3.6%, to $69.7 million in the second quarter of 2021 compared to $67.3 million in the same quarter a year ago. The increase in non-interest expense in the second quarter of 2021 was primarily due to an increase of $4.6 million in salaries and other employee benefits, and an increase of $1.1 million in computer and equipment expenses, offset, in part, by a decrease of $2.2 million in amortization expense of investments in low-income housing and alternative energy partnerships and a decrease of $1.0 million in FDIC and state assessments, when compared to the same quarter a year ago. The efficiency ratio was 43.4% in the second quarter of 2021 compared to 44.8% for the same quarter a year ago.

Income taxes

The effective tax rate for the second quarter of 2021 was 22.7% compared to 6.0% for the second quarter of 2020. In the second quarter of 2020, the Company made a new alternative energy investment which resulted in a year-to-date catchup adjustment in the second quarter to reflect the lower full year effective tax rate for 2020 resulting from tax credits generated from the new alternative energy investment. The effective tax rate includes the impact of alternative energy investments and low-income housing tax credits.

BALANCE SHEET REVIEW

Gross loans were $15.7 billion as of June 30, 2021, an increase of $46.3 million, or 3.0%, from $15.6 billion as of December 31, 2020. The increase was primarily due to an increase of $60.1 million in commercial mortgage loans and an increase of $32.6 million in commercial loans, not including Paycheck Protection Program (“PPP”) loans, offset, in part, by a decrease of $41.7 million, or 1.0%, in residential mortgage loans and $15.0 million, or 2.2%, in real estate construction loans. During the second quarter of 2021, Cathay Bank funded 355 new PPP loans totaling $24.9 million. Loan fees recognized on PPP loans were $2.7 million in the second quarter and $1.7 million in the first quarter of 2021 compared to $1.7 million in the fourth quarter of 2020. As of June 30, 2021, the remaining deferred loan fees on PPP loans was $8.8 million.

The loan balances and composition as of June 30, 2021, compared to December 31, 2020 and June 30, 2020, are presented below:


	June 30, 2021	December 31, 2020	June 30, 2020
	(In thousands) (Unaudited)
Commercial loans	$ 2,628,534	$ 2,595,926	$ 2,746,316
Paycheck protection program loans	238,904	240,907	261,650
Residential mortgage loans	4,103,736	4,145,389	4,184,721
Commercial mortgage loans	7,615,087	7,555,027	7,391,502
Equity lines	436,801	424,555	399,207
Real estate construction loans	664,495	679,492	624,199
Installment and other loans	3,132	3,100	688
Gross loans	$ 15,690,689	$ 15,644,396	$ 15,608,283

Allowance for loan losses	(131,256)	(166,538)	(169,680)
Unamortized deferred loan fees	(6,865)	(2,494)	(4,507)
Total loans, net	$ 15,552,568	$ 15,475,364	$ 15,434,096

Total deposits were $16.5 billion as of June 30, 2021, an increase of $428.1 million, or 2.7%, from $16.1 billion as of December 31, 2020. We believe the increases in noninterest-bearing demand deposits, money market deposits and savings deposits resulted from higher liquidity maintained by our depositors during these uncertain times and improved money market deposit generation. We believe the decreases in time deposits resulted primarily from the runoff of wholesale time deposits and migration of some maturing time deposits to money market deposits. During the second quarter of 2021, our deposits excluding CD’s increased by $462.2 million, or 18.3% annualized. The deposit balances and composition as of June 30, 2021, compared to December 31, 2020 and June 30, 2020, are presented below:

	June 30, 2021	December 31, 2020	June 30, 2020
	(In thousands) (Unaudited)
Non-interest-bearing demand deposits	$ 3,664,931	$ 3,365,086	$ 3,298,415
NOW deposits	2,026,154	1,926,135	1,671,290
Money market deposits	4,003,043	3,359,191	2,982,385
Savings deposits	900,106	785,672	743,982
Time deposits	5,943,278	6,673,317	7,585,832
Total deposits	$ 16,537,512	$ 16,109,401	$ 16,281,904

ASSET QUALITY REVIEW

As of June 30, 2021, total non-accrual loans were $67.8 million, an increase of $0.1 million, or 0.1%, from $67.7 million as of December 31, 2020, and an increase of $11.3 million, or 20.0%, from $56.5 million as of June 30, 2020.

The allowance for loan losses was $131.3 million and the allowance for off-balance sheet unfunded credit commitments was $8.1 million as of June 30, 2021. The allowances represent the amount estimated by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for loan losses represented 0.84% of period-end gross loans, and 189.42% of non-performing loans as of June 30, 2021. The comparable ratios were 1.06% of period-end gross loans, and 229.18% of non-performing loans as of December 31, 2020.

The changes in non-performing assets and troubled debt restructurings as of June 30, 2021, compared to December 31, 2020 and June 30, 2020, are presented below:

(Dollars in thousands) (Unaudited)	June 30, 2021	December 31, 2020	% Change	June 30, 2020	% Change
Non-performing assets
Accruing loans past due 90 days or more	$ 1,513	$ 4,982	(70)	$ 21,374	(93)
Non-accrual loans:
Construction loans	4,116	4,286	(4)	4,433	(7)
Commercial mortgage loans	36,884	33,715	9	10,896	239
Commercial loans	16,333	23,087	(29)	27,125	(40)
Residential mortgage loans	10,449	6,596	58	14,004	(25)
Total non-accrual loans:	$ 67,782	$ 67,684	0	$ 56,458	20
Total non-performing loans	69,295	72,666	(5)	77,832	(11)
Other real estate owned	4,871	4,918	(1)	7,318	(33)
Total non-performing assets	$ 74,166	$ 77,584	(4)	$ 85,150	(13)
Accruing troubled debt restructurings (TDRs)	$ 27,261	$ 27,721	(2)	$ 31,671	(14)

Allowance for loan losses	$ 131,256	$ 166,538	(21)	$ 169,680	(23)
Total gross loans outstanding, at period-end	$ 15,690,689	$ 15,644,396	0	$ 15,608,283	1

Allowance for loan losses to non-performing loans, at period-end	189.42%	229.18%		218.01%
Allowance for loan losses to gross loans, at period-end	0.84%	1.06%		1.09%

The ratio of non-performing assets to total assets was 0.4% as of June 30, 2021, compared to 0.4% as of December 31, 2020. Total non-performing assets decreased $3.4 million, or 4.4%, to $74.2 million as of June 30, 2021, compared to $77.6 million as of December 31, 2020, primarily due to a decrease of $3.5 million, or 70.0%, in accruing loans past due 90 days or more.

CAPITAL ADEQUACY REVIEW

As of June 30, 2021, the Company’s Tier 1 risk-based capital ratio of 13.77%, total risk-based capital ratio of 15.47%, and Tier 1 leverage capital ratio of 10.85%, calculated under the Basel III capital rules, continue to place the Company in the “well capitalized” category for regulatory purposes, which is defined as institutions with a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. As of December 31, 2020, the Company’s Tier 1 risk-based capital ratio was 13.53%, total risk-based capital ratio was 15.47%, and Tier 1 leverage capital ratio was 10.94%. During the second quarter of 2021, the Company repurchased 1.5 million shares at an average cost of $41.46 per share for a total of $63.4 million under its April 2021 stock repurchase program of up to $75 million.

YEAR-TO-DATE REVIEW

Net income for the six months ended June 30, 2021, was $150.6 million, an increase of $49.4 million, or 48.8%, compared to net income of $101.2 million for the same period a year ago. Diluted earnings per share was $1.89 compared to $1.27 per share for the same period a year ago. The net interest margin for the six months ended June 30, 2021, was 3.22% compared to 3.17% for the same period a year ago.

Return on average stockholders’ equity was 12.36% and return on average assets was 1.58% for the six months ended June 30, 2021, compared to a return on average stockholders’ equity of 8.72% and a return on average assets of 1.10% for the same period a year ago. The efficiency ratio for the six months ended June 30, 2021, was 45.17% compared to 44.71% for the same period a year ago.

CONFERENCE CALL

Cathay General Bancorp will host a conference call to discuss its second quarter 2021 financial results this afternoon, Monday, July 26, 2021, at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-855-761-3186 and enter Conference ID 1378058. A presentation to accompany the earnings call will be available at www.cathaygeneralbancorp.com. A listen-only live Webcast of the call will be available at www.cathaygeneralbancorp.com and a recorded version is scheduled to be available for replay for 12 months after the call.

ABOUT CATHAY GENERAL BANCORP

Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 37 branches in California, 10 branches in New York State, four in Washington State, two in Illinois, two in Texas, one in Maryland, Massachusetts, Nevada, and New Jersey, one in Hong Kong, and a representative office in Taipei, Beijing, and Shanghai. Cathay Bank’s website is at www.cathaybank.com. Cathay General Bancorp’s website is at www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.

FORWARD-LOOKING STATEMENTS

Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “predicts,” “potential,” “possible,” “optimistic,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from local, regional, national and international business, market and economic conditions and events (such as the COVID-19 pandemic) and the impact they may have on us, our customers and our operations, assets and liabilities; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; our ability to generate anticipated returns on our investments and financings, including in tax-advantaged projects; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters, public health crises (such as the COVID-19 pandemic) and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; and general competitive, economic, political, and market conditions and fluctuations.

These and other factors are further described in Cathay General Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2020 (Item 1A in particular), other reports filed with the Securities and Exchange Commission (“SEC”), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update or review any forward-looking statement to reflect circumstances, developments or events occurring after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CATHAY GENERAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)

	Three months ended			Six months ended June 30,
(Dollars in thousands, except per share data)	June 30, 2021	March 31, 2021	June 30, 2020	2021	2020

FINANCIAL PERFORMANCE
Net interest income before (reversal)/provision for credit losses	$ 148,001	$ 141,818	$ 134,475	$ 289,819	$ 274,786
(Reversal)/provision for credit losses	(9,000)	(13,558)	25,000	(22,558)	50,000
Net interest income after (reversal)/provision for credit losses	157,001	155,376	109,475	312,377	224,786
Non-interest income	12,583	10,000	15,606	22,583	21,392
Non-interest expense	69,707	71,403	67,268	141,110	132,422
Income before income tax expense	99,877	93,973	57,813	193,850	113,756
Income tax expense	22,678	20,589	3,492	43,267	12,583
Net income	$ 77,199	$ 73,384	$ 54,321	$ 150,583	$ 101,173

Net income per common share
Basic	$ 0.98	$ 0.92	$ 0.68	$ 1.90	$ 1.27
Diluted	$ 0.97	$ 0.92	$ 0.68	$ 1.89	$ 1.27

Cash dividends paid per common share	$ 0.31	$ 0.31	$ 0.31	$ 0.62	$ 0.62


SELECTED RATIOS
Return on average assets	1.60%	1.57%	1.15%	1.58%	1.10%
Return on average total stockholders’ equity	12.53%	12.18%	9.31%	12.36%	8.72%
Efficiency ratio	43.41%	47.03%	44.82%	45.17%	44.71%
Dividend payout ratio	31.80%	33.59%	45.42%	32.67%	48.76%


YIELD ANALYSIS (Fully taxable equivalent)
Total interest-earning assets	3.62%	3.68%	3.91%	3.65%	4.17%
Total interest-bearing liabilities	0.53%	0.67%	1.20%	0.60%	1.34%
Net interest spread	3.09%	3.01%	2.71%	3.05%	2.83%
Net interest margin	3.24%	3.20%	3.02%	3.22%	3.17%


CAPITAL RATIOS	June 30, 2021	December 31, 2020	June 30, 2020
Tier 1 risk-based capital ratio	13.77%	13.53%	12.88%
Total risk-based capital ratio	15.47%	15.47%	14.81%
Tier 1 leverage capital ratio	10.85%	10.94%	10.46%

CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)	June 30, 2021	December 31, 2020	June 30, 2020

Assets
Cash and due from banks	$ 133,507	$ 138,616	$ 148,700
Short-term investments and interest bearing deposits	1,589,086	1,282,462	1,425,001
Securities available-for-sale (amortized cost of $991,715 at June 30, 2021,
$1,019,230 at December 31, 2020 and $1,122,994 at June 30, 2020)	1,002,515	1,036,550	1,146,102
Loans	15,690,689	15,644,396	15,608,283
Less: Allowance for loan losses	(131,256)	(166,538)	(169,680)
Unamortized deferred loan fees, net	(6,865)	(2,494)	(4,507)
Loans, net	15,552,568	15,475,364	15,434,096
Equity securities	20,113	23,744	24,570
Federal Home Loan Bank stock	17,250	17,250	17,250
Other real estate owned, net	4,871	4,918	7,318
Affordable housing investments and alternative energy partnerships, net	286,833	309,016	320,047
Premises and equipment, net	100,917	102,998	104,165
Customers’ liability on acceptances	7,560	13,753	10,665
Accrued interest receivable	56,092	59,032	54,326
Goodwill	372,189	372,189	372,189
Other intangible assets, net	5,041	5,434	6,030
Right-of-use assets- operating leases	31,310	30,919	34,217
Other assets	168,510	170,889	162,361
Total assets	$ 19,348,362	$ 19,043,134	$ 19,267,037

Liabilities and Stockholders’ Equity
Deposits
Non-interest-bearing demand deposits	$ 3,664,931	$ 3,365,086	$ 3,298,415
Interest-bearing deposits:
NOW deposits	2,026,154	1,926,135	1,671,290
Money market deposits	4,003,043	3,359,191	2,982,385
Savings deposits	900,106	785,672	743,982
Time deposits	5,943,278	6,673,317	7,585,832
Total deposits	16,537,512	16,109,401	16,281,904

Advances from the Federal Home Loan Bank	20,000	150,000	230,000
Other borrowings for affordable housing investments	23,249	23,714	32,399
Long-term debt	119,136	119,136	119,136
Deferred payments from acquisition	—	—	7,753
Acceptances outstanding	7,560	13,753	10,665
Lease liabilities – operating leases	34,194	33,484	36,408
Other liabilities	154,354	175,502	206,324
Total liabilities	16,896,005	16,624,990	16,924,589
Stockholders’ equity	2,452,357	2,418,144	2,342,448
Total liabilities and equity	$ 19,348,362	$ 19,043,134	$ 19,267,037

Book value per common share	$ 31.38	$ 30.41	$ 29.42
Number of common shares outstanding	78,158,590	79,508,265	79,619,984

CATHAY GENERAL BANCORP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three months ended			Six months ended June 30,
	June 30, 2021	March 31, 2021	June 30, 2020	2021	2020
	(In thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loan receivable, including loan fees	$ 161,493	$ 159,721	$ 168,149	$ 321,214	$ 346,019
Investment securities	3,189	3,067	5,405	6,256	13,015
Federal Home Loan Bank stock	255	217	214	472	519
Deposits with banks	438	315	240	753	1,191
Total interest and dividend income	165,375	163,320	174,008	328,695	360,744

INTEREST EXPENSE
Time deposits	10,055	14,009	30,811	24,064	65,966
Other deposits	5,465	5,594	5,919	11,059	13,910
Advances from Federal Home Loan Bank	415	475	1,316	890	2,868
Long-term debt	1,439	1,424	1,440	2,863	2,880
Deferred payments from acquisition	—	—	42	—	100
Short-term borrowings	—	—	5	—	234
Total interest expense	17,374	21,502	39,533	38,876	85,958

Net interest income before (reversal)/provision for credit losses	148,001	141,818	134,475	289,819	274,786
(Reversal)/provision for credit losses	(9,000)	(13,558)	25,000	(22,558)	50,000
Net interest income after (reversal)/provision for credit losses	157,001	155,376	109,475	312,377	224,786

NON-INTEREST INCOME
Net (losses)/gains from equity securities	(879)	(2,752)	5,779	(3,631)	(323)
Securities gains, net	—	853	1,147	853	1,153
Letters of credit commissions	1,782	1,690	1,560	3,472	3,200
Depository service fees	1,343	1,363	1,117	2,706	2,415
Other operating income	10,337	8,846	6,003	19,183	14,947
Total non-interest income	12,583	10,000	15,606	22,583	21,392

NON-INTEREST EXPENSE
Salaries and employee benefits	32,758	32,722	28,197	65,480	59,136
Occupancy expense	4,960	5,046	4,963	10,006	10,140
Computer and equipment expense	3,647	3,271	2,581	6,918	5,174
Professional services expense	5,756	4,710	5,200	10,466	10,345
Data processing service expense	3,243	3,655	3,566	6,898	7,232
FDIC and State assessments	1,440	1,925	2,446	3,365	4,861
Marketing expense	1,443	2,882	915	4,325	2,801
Other real estate owned expense/(income)	191	94	452	285	(3,652)
Amortization of investments in low income housing and alternative energy partnerships	10,682	11,570	12,934	22,252	26,824
Amortization of core deposit intangibles	171	172	171	343	343
Cost associated with debt redemption	—	732	—	732	—
Other operating expense	5,416	4,624	5,843	10,040	9,218
Total non-interest expense	69,707	71,403	67,268	141,110	132,422

Income before income tax expense	99,877	93,973	57,813	193,850	113,756
Income tax expense	22,678	20,589	3,492	43,267	12,583
Net income	$ 77,199	$ 73,384	$ 54,321	$ 150,583	$ 101,173
Net income per common share:
Basic	$ 0.98	$ 0.92	$ 0.68	$ 1.90	$ 1.27
Diluted	$ 0.97	$ 0.92	$ 0.68	$ 1.89	$ 1.27

Cash dividends paid per common share	$ 0.31	$ 0.31	$ 0.31	$ 0.62	$ 0.62
Basic average common shares outstanding	79,167,004	79,530,777	79,581,097	79,347,886	79,584,587
Diluted average common shares outstanding	79,418,668	79,832,305	79,682,426	79,624,344	79,756,226

CATHAY GENERAL BANCORP AVERAGE BALANCES – SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited)

	Three months ended
(In thousands)	June 30, 2021		March 31, 2021		June 30, 2020
Interest-earning assets	Average Balance	Average Yield/Rate ⁽¹⁾	Average Balance	Average Yield/Rate ⁽¹⁾	Average Balance	Average Yield/Rate ⁽¹⁾
Loans ⁽¹⁾	$ 15,684,329	4.13%	$ 15,691,976	4.13%	$ 15,626,412	4.33%
Taxable investment securities	976,593	1.31%	995,704	1.25%	1,268,661	1.71%
FHLB stock	17,250	5.93%	17,250	5.10%	17,434	4.95%
Deposits with banks	1,633,686	0.11%	1,283,375	0.10%	980,949	0.10%
Total interest-earning assets	$ 18,311,858	3.62%	$ 17,988,305	3.68%	$ 17,893,456	3.91%

Interest-bearing liabilities
Interest-bearing demand deposits	$ 1,967,069	0.13%	$ 1,890,390	0.14%	$ 1,586,112	0.19%
Money market deposits	3,951,549	0.47%	3,552,217	0.54%	2,756,493	0.72%
Savings deposits	896,747	0.09%	845,543	0.10%	740,500	0.14%
Time deposits	6,035,219	0.67%	6,404,755	0.89%	7,616,446	1.63%
Total interest-bearing deposits	$ 12,850,584	0.48%	$ 12,692,905	0.63%	$ 12,699,551	1.16%
Other borrowed funds	93,442	1.79%	123,424	1.56%	412,953	1.33%
Long-term debt	119,136	4.84%	119,136	4.85%	119,136	4.86%
Total interest-bearing liabilities	13,063,162	0.53%	12,935,465	0.67%	13,231,640	1.20%

Non-interest-bearing demand deposits	3,597,475		3,406,460		3,101,265

Total deposits and other borrowed funds	$ 16,660,637		$ 16,341,925		$ 16,332,905

Total average assets	$ 19,347,886		$ 19,011,161		$ 18,930,651
Total average equity	$ 2,471,388		$ 2,443,040		$ 2,346,775

	Six months ended
(In thousands)	June 30, 2021		June 30, 2020
Interest-earning assets	Average Balance	Average Yield/Rate ⁽¹⁾	Average Balance	Average Yield/Rate ⁽¹⁾
Loans ⁽¹⁾	$ 15,688,131	4.13%	$ 15,419,926	4.51%
Taxable investment securities	986,096	1.28%	1,324,013	1.98%
FHLB stock	17,250	5.52%	17,352	6.02%
Deposits with banks	1,459,498	0.10%	645,986	0.37%
Total interest-earning assets	$ 18,150,975	3.65%	$ 17,407,277	4.17%

Interest-bearing liabilities
Interest-bearing demand deposits	$ 1,928,941	0.14%	$ 1,487,354	0.20%
Money market deposits	3,752,986	0.50%	2,597,245	0.92%
Savings deposits	871,286	0.10%	736,936	0.16%
Time deposits	6,218,967	0.78%	7,556,033	1.76%
Total interest-bearing deposits	$ 12,772,180	0.55%	$ 12,377,568	1.30%
Other borrowed funds	108,350	1.66%	402,491	1.60%
Long-term debt	119,136	4.85%	119,136	4.86%
Total interest-bearing liabilities	12,999,666	0.60%	12,899,195	1.34%

Non-interest-bearing demand deposits	3,502,495		2,982,577
Total deposits and other borrowed funds	$ 16,502,161		$ 15,881,772

Total average assets	$ 19,181,963		$ 18,466,846
Total average equity	$ 2,456,167		$ 2,333,529

(1) Yields and interest earned include net loan fees. Non-accrual loans are included in the average balance.

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SOURCE Cathay General Bancorp

July 26, 2021 4:48 pm

Range Announces Second Quarter 2021 Financial Results

FORT WORTH, Texas, July 26, 2021 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2021 financial results.

Highlights –

Realizations before index hedges of $3.25 per mcfe, or approximately $0.41 above NYMEX natural gas
Pre-hedge NGL realization of $27.92 per barrel, highest since 2014
NGL differential of $2.24 per barrel above Mont Belvieu
Natural gas differentials, including basis hedging, averaged $0.39 per mcf below NYMEX
All-in second quarter capital spending was $120 million, approximately 28% of the annual budget
Production averaged 2.10 Bcfe per day, approximately 31% liquids
Redeemed $63.3 million of senior notes and senior subordinated notes due between 2021 and 2023
Reduced total debt outstanding by approximately $66 million
Range committed to a pilot project with Project Canary to certify the production of responsibly sourced natural gas (RSG)

Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range continues to make progress on key objectives: improving margins with a focus on cost structure, generating free cash flow, and operating safely while maintaining peer-leading capital efficiency. Range generated solid free cash flow for the quarter, investing $120 million in second quarter with corresponding cash flow from operations before changes in working capital of $177 million. Range remains committed to disciplined capital spending and generating sustainable free cash flow and at current strip pricing, we expect Range to rapidly approach our long-term balance sheet targets. We believe Range is differentiated as a result of our low sustaining capital, competitive cost structure, marketing strategies, environmental leadership and importantly, our multi-decade core inventory life, which is an increasingly important competitive advantage.”

Financial Discussion

Except for generally accepted accounting principles (GAAP) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, stock-based compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, production and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.

Second Quarter 2021

GAAP revenues for second quarter 2021 totaled $435 million, GAAP net cash provided from operating activities (including changes in working capital) was $174 million, and GAAP net earnings was a loss of $156 million ($0.65 per diluted share). Second quarter earnings results include a $250 million derivative fair value loss due to increases in commodity prices.

Non-GAAP revenues for second quarter 2021 totaled $644 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $177 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $59 million ($0.24 per diluted share) in second quarter 2021.

The following table details Range’s average production and realized pricing for second quarter 2021^(a):

	2Q21 Production & Realized Pricing
	Natural Gas (Mcf)	Oil (Bbl)	NGLs (Bbl)	Natural Gas Equivalent (Mcfe)

Net Production per day	1,449,307	8,539	100,587	2,104,064

Average index price^(b)	$2.84	$65.96	$25.68
Differential	(0.40)	(8.36)	2.24
Basis hedging	0.01	–	–
Realized prices before index hedges	$2.45	$57.60	$27.92	$3.25
Settled index hedges	(0.07)	(15.39)	(2.28)	(0.21)
Average realized prices after hedges	$ 2.38	$ 42.21	$ 25.64	$ 3.04

(a) May not add due to rounding
(b) Indexes include NYMEX-Henry Hub, NYMEX-WTI and OPIS-Mont Belvieu for natural gas, oil and NGLs, respectively

Total production for second quarter 2021 averaged approximately 2.10 net Bcfe per day. By area, southwest Marcellus production averaged 2.0 Bcfe per day while the northeast Marcellus assets averaged 77 net Mmcf per day during the quarter.

Second quarter 2021 natural gas, natural gas liquids (NGL) and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates) averaged $3.04 per mcfe.

The average natural gas price, including the impact of basis hedging, was $2.45 per mcf, or a ($0.39) per mcf differential to NYMEX. The Company’s average 2021 natural gas differential to NYMEX remains within an expected range of ($0.30) to ($0.40) per mcf.
Pre-hedge NGL realizations were $27.92 per barrel, an improvement of $1.56 per barrel versus the first quarter of 2021 and a $2.24 premium to the Mont Belvieu equivalent barrel. The Company’s average 2021 premium differential to the Mont Belvieu equivalent barrel remains within an expected range of $0.50 – $2.00 per barrel for 2021.
Crude oil and condensate price realizations, before realized hedges, averaged $57.60 per barrel, or $8.36 below WTI (West Texas Intermediate). Range’s estimated condensate differential to WTI during 2021 remains within an expected range of $7-$9 below NYMEX.

The following table details Range’s unit costs per mcfe⁽^a):

Expenses		2Q 2021 ($/Mcfe)		2Q 2020 ($/Mcfe)	Increase (Decrease)

Direct operating^(a)	$	0.10	$	0.11	(9%)
Transportation, gathering, processing and compression		1.48		1.30	14%
Production and ad valorem taxes		0.04		0.03	33%
General and administrative^(a)		0.16		0.13	23%
Interest expense^(a)		0.29		0.22	32%
Total cash unit costs^(b)		2.07		1.79	15%
Depletion, depreciation and amortization (DD&A)		0.47		0.49	(4%)
Total unit costs plus DD&A^(b)	$	2.54	$	2.28	11 %

(a) Excludes stock-based compensation, legal settlements and amortization of deferred financing costs.
(b) May not add due to rounding.

Capital Expenditures

Second quarter 2021 drilling and completion expenditures were $115.7 million. In addition, during the quarter, $4.5 million was invested on acreage leasehold, gathering systems and other. Total capital expenditures year to date were $226 million at the end of the second quarter. Range remains on track to spend at or below the total capital budget of $425 million in 2021.

Financial Position

In April 2021, Range redeemed outstanding principal amounts of senior notes due in 2021 and 2022 totaling approximately $26.0 million and senior subordinated notes due in 2021, 2022 and 2023 totaling approximately $37.3 million.

As of June 30, 2021, Range had total debt outstanding of $3.1 billion, consisting of $121 million in bank debt and $2.95 billion in senior notes. The Company has approximately $750 million in senior notes that mature through 2023, which are expected to be retired with projected free cash flow at current strip pricing. Range had over $1.9 billion of borrowing capacity under the bank credit facility commitment amount at the end of the second quarter.

Operational Activity

The table below summarizes estimated activity for 2021 regarding the number of wells to sales for each area.

	Wells TIL 2Q 2021	Calendar 2021 Planned TIL	Remaining 2021
SW PA Super-Rich	3	17	8
SW PA Wet	12	18	3
SW PA Dry	10	24	7
Total Wells	25	59	18

NGL Marketing and Transportation

In second quarter, Range began utilizing an additional 5,000 barrels per day of Mariner East capacity to transport NGLs to export markets. Range’s second quarter NGL differential benefitted from a diversified marketing strategy with flexibility in product placement and sales timing. Range’s unhedged realized NGL price for the second quarter was $27.92 per barrel, a $2.24 premium to Mont Belvieu. This represents the highest premium to Mont Belvieu in Company history and, in absolute terms, the highest quarterly NGL price since 2014. As a result of export timing, the second quarter NGL barrel included a higher percentage of propane and heavier products, thereby improving the quarterly differential. During second half 2021 the Company expects strong fundamentals to result in higher absolute prices for domestic propane and butane, compressing arbitrage premiums of U.S. exports. Coupled with a lighter barrel from export timing and seasonality in domestic NGL sales, Range expects lower premiums to Mont Belvieu but improving overall NGL price realizations in a globally competitive price environment. Range’s 2021 premium NGL differential is expected to be within a $0.50 to $2.00 per barrel range for the full year, showing the benefit of a diversified NGL portfolio and access to international markets.

For reference, Range’s forecasted 2021 pre-hedge NGL realization has increased by approximately $7 per barrel since February, resulting in an increase of approximately $250 million in forecasted revenue. As a result of higher NGL prices and the effect of Range’s price-linked processing contracts, Range is increasing guidance for 2021 GP&T expense to $1.43 to $1.47 per mcfe. Net of projected processing costs, Range’s forecasted pre-hedge cash flow from NGL sales in 2021 has increased by approximately $200 million since February. As previously disclosed, Range expects GP&T expense to decline annually in 2022 and beyond based on existing gathering contracts. The reduction in annual gathering expenses relative to 2021 totals approximately $70 million by 2025 and greater than $100 million by 2030.

Guidance – 2021

Capital & Production Guidance

Range’s 2021 all-in capital budget is $425 million. Production for full-year 2021 is expected to average approximately 2.15 Bcfe per day, with ~30% attributed to liquids production.

Full Year 2021 Expense Guidance

Direct operating expense:	$0.09 – $0.11 per mcfe
Transportation, gathering, processing and compression expense:	$1.43 – $1.47 per mcfe
Production tax expense:	$0.02 – $0.04 per mcfe
Exploration expense:	$20.0 – $25.0 million
G&A expense:	$0.15 – $0.16 per mcfe
Interest expense:	$0.26 – $0.28 per mcfe
DD&A expense:	$0.47 – $0.50 per mcfe
Net brokered gas marketing net expense:	$2.0 – $10.0 million

Full Year 2021 Price Guidance

Based on current market indications, Range expects to average the following price differentials for its production in 2021.

Natural Gas:⁽¹⁾	NYMEX minus $0.30 to $0.40
Natural Gas Liquids (including ethane):⁽²⁾	Mont Belvieu plus $0.50 to $2.00 per barrel
Oil/Condensate:	WTI minus $7.00 to $9.00

(1) Including basis hedging

(2) Weighting based on 53% ethane, 27% propane, 7% normal butane, 4% iso-butane and 9% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help maintain a strong, flexible financial position. As of July 16, 2021, Range had more than 75% of its expected second half 2021 natural gas and condensate production hedged. Range also had over 35% of its projected second half 2021 net NGL revenue hedged as of July 16^th. For details, please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

Range has also hedged basis for natural gas and NGL volumes to limit volatility between published pricing benchmarks and regional sales prices. The combined fair value of the natural gas basis, NGL freight and spread hedges as of June 30, 2021 was a net gain of $26 million.

Conference Call Information

A conference call to review the financial results is scheduled on Tuesday, July 27 at 9:00 a.m. ET. To participate in the call, please dial (877) 928-8777 and provide conference code 1553208 about 10 minutes prior to the scheduled start time.

A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company’s website until August 27.

Non-GAAP Financial Measures

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website.

Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each line in the statement of operations to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s quarterly report on Form 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused on stacked-pay projects in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, improving commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at

www.rangeresources.com

or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at

www.sec.gov

or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contacts:

Laith Sando, Vice President – Investor Relations
817-869-4267
[email protected]

Range Media Contacts:

Mark Windle, Director of Corporate Communications
724-873-3223
[email protected]

RANGE RESOURCES CORPORATION

STATEMENTS OF OPERATIONS

Based on GAAP reported earnings with additional
details of items included in each line in Form 10-Q
(Unaudited, in thousands, except per share data)

	Three Months Ended June 30,								Six Months Ended June 30,
		2021			2020		%			2021			2020		%

Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	621,855		$	349,258				$	1,225,202		$	781,354
Derivative fair value (loss) income		(249,683	)		(6,303	)				(307,562	)		226,872
Brokered natural gas, marketing and other (b)		61,523			33,309					142,025			61,698
ARO settlement (b)		(1	)		(12	)				—			(12	)
Other (b)		1,028			294					1,089			554
Total revenues and other income		434,722			376,546		15	%		1,060,754			1,070,466		-1	%

Costs and expenses:
Direct operating		19,418			23,960					36,741			55,545
Direct operating – non-cash stock-based compensation (c)		340			434					667			884
Transportation, gathering, processing and compression		282,844			278,875					557,174			563,640
Production and ad valorem taxes		8,414			5,557					13,039			14,576
Brokered natural gas and marketing		68,561			37,993					140,446			70,204
Brokered natural gas and marketing – non-cash stock-based compensation (c)		443			168					893			581
Exploration		4,666			7,655					9,818			14,402
Exploration – non-cash stock-based compensation (c)		362			372					748			702
Abandonment and impairment of unproved properties		2,177			5,524					5,206			10,937
General and administrative		30,742			28,333					58,902			61,343
General and administrative – non-cash stock-based compensation (c)		9,382			9,179					18,787			17,208
General and administrative – lawsuit settlements		118			776					557			1,591
General and administrative – bad debt expense		—			—					—			400
Exit and termination costs		(15,946	)		10,297					(2,232	)		11,892
Deferred compensation plan (d)		35,462			12,587					55,273			4,050
Interest expense		54,965			46,489					109,556			91,946
Interest expense – amortization of deferred financing costs (e)		2,322			2,135					4,609			4,196
Loss (gain) on early extinguishment of debt		63			(8,991	)				98			(21,914	)
Depletion, depreciation and amortization		90,629			104,626					179,012			207,612
Impairment of proved properties		—			—					—			77,000
(Gain) loss on sale of assets		(2,506	)		426					(646	)		(121,673	)
Total costs and expenses		592,456			566,395		5	%		1,188,648			1,065,122		12	%

(Loss) income before income taxes		(157,734	)		(189,849	)	-17	%		(127,894	)		5,344		nm	%

Income tax expense (benefit):
Current		2,569			(3	)				2,737			(366	)
Deferred		(3,831	)		(22,263	)				(1,310	)		7,098
		(1,262	)		(22,266	)				1,427			6,732

Net loss	$	(156,472	)	$	(167,583	)	-7	%	$	(129,321	)	$	(1,388	)	nm	%

Net Loss Income Per Common Share:
Basic	$	(0.65	)	$	(0.70	)			$	(0.53	)	$	(0.01	)
Diluted	$	(0.65	)	$	(0.70	)			$	(0.53	)	$	(0.01	)

Weighted average common shares outstanding, as reported:
Basic		242,592			239,472		1	%		242,377			242,717		0	%
Diluted		242,592			239,472		1	%		242,377			242,717		0	%

(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.
(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.
(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
(e) Included in interest expense in the 10-Q.

RANGE RESOURCES CORPORATION

BALANCE SHEETS
(In thousands)		June 30,			December 31,
		2021			2020
		(Unaudited)			(Audited)
Assets
Current assets	$	313,847		$	266,508
Derivative assets		47,348			40,012
Natural gas and oil properties, successful efforts method		5,733,399			5,686,809
Transportation and field assets		3,826			4,161
Operating lease right-of-use assets		52,291			63,581
Other		78,722			75,865
	$	6,229,433		$	6,136,936

Liabilities and Stockholders’ Equity
Current liabilities	$	669,953		$	673,445
Asset retirement obligations		6,689			6,689
Derivative liabilities		249,277			26,707

Bank debt		114,025			693,123
Senior notes		2,922,632			2,329,745
Senior subordinated notes		—			17,384
Total debt		3,036,657			3,040,252

Deferred tax liability		134,000			135,267
Derivative liabilities		22,367			9,746
Deferred compensation liability		121,010			81,481
Operating lease liabilities		32,770			43,155
Asset retirement obligations and other liabilities		87,336			91,157
Divestiture contract obligation		346,113			391,502

Common stock and retained earnings		1,553,684			1,668,146
Other comprehensive loss		(338	)		(479	)
Common stock held in treasury stock		(30,085	)		(30,132	)
Total stockholders’ equity		1,523,261			1,637,535
	$	6,229,433		$	6,136,936

RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021		2020	%			2021		2020		%

Total revenues and other income, as reported	$	434,722	$	376,546	15	%	$	1,060,754	$	1,070,466		-1	%
Adjustment for certain special items:
Total change in fair value related to derivatives prior to settlement loss (gain)		209,370		125,803				227,854		(7,443	)
ARO settlement loss		1		12				—		12
Total revenues, as adjusted, non-GAAP	$	644,093	$	502,361	28	%	$	1,288,608	$	1,063,035		21	%

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

Net loss	$	(156,472	)	$	(167,583	)	$	(129,321	)	$	(1,388	)
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax (benefit) expense		(3,831	)		(22,263	)		(1,310	)		7,098
Depletion, depreciation, amortization and impairment		90,629			104,626			179,012			284,612
Abandonment and impairment of unproved properties		2,178			5,524			5,206			10,937
Derivative fair value loss (income)		249,683			6,303			307,562			(226,872	)
Cash settlements on derivative financial instruments		(40,313	)		119,500			(79,708	)		219,429
Divestiture contract obligation		(16,130	)		—			(3,135	)		—
Allowance for bad debts		—			—			—			400
Amortization of deferred issuance costs and other		2,177			1,741			4,259			3,398
Deferred and stock-based compensation		45,059			22,637			75,113			23,113
(Gain) loss on sale of assets and other		(2,506	)		426			(646	)		(121,673	)
Loss (gain) on early extinguishment of debt		63			(8,991	)		98			(21,914	)

Changes in working capital:
Accounts receivable		(15,992	)		19,045			(49,138	)		103,390
Inventory and other		(1,001	)		376			(879	)		(4,056	)
Accounts payable		(13,178	)		(46,013	)		21,240			(27,353	)
Accrued liabilities and other		33,817			43,434			(44,918	)		(45,853	)
Net changes in working capital		3,646			16,842			(73,695	)		26,128
Net cash provided from operating activities	$	174,183		$	78,762		$	283,435		$	203,268



RECONCILIATION OF NET CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020
Net cash provided from operating activities, as reported	$	174,183		$	78,762		$	283,435		$	203,268
Net changes in working capital		(3,646	)		(16,842	)		73,695			(26,128	)
Exploration expense		4,666			7,655			9,818			14,402
Lawsuit settlements		118			776			557			1,591
Exit and termination costs		184			10,297			394			11,892
Non-cash compensation adjustment		1,075			509			2,114			1,122
Cash flow from operations before changes in working capital – non-GAAP measure	$	176,580		$	81,157		$	370,013		$	206,147



ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020
Basic:
Weighted average shares outstanding		249,694			245,879			249,008			247,516
Stock held by deferred compensation plan		(7,102	)		(6,407	)		(6,631	)		(4,799	)
Adjusted basic		242,592			239,472			242,377			242,717

Dilutive:
Weighted average shares outstanding		249,694			245,879			249,008			247,516
Dilutive stock options under treasury method		(7,102	)		(6,407	)		(6,631	)		(4,799	)
Adjusted dilutive		242,592			239,472			242,377			242,717

RANGE RESOURCES CORPORATION

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended June 30,									Six Months Ended June 30,
		2021			2020		%				2021			2020		%
Natural gas, NGL and oil sales components:
Natural gas sales	$	321,565		$	214,207				$		657,366		$	467,456
NGL sales		255,533			124,383						485,941			267,622
Oil sales		44,757			10,668						81,895			46,276
Total oil and gas sales, as reported	$	621,855		$	349,258		78	%	$		1,225,202		$	781,354		57	%

Derivative fair value (loss) income, as reported:	$	(249,683	)	$	(6,303	)			$		(307,562	)	$	226,872
Cash settlements on derivative financial instruments – loss (gain):
Natural gas		7,514			(90,837	)					8,862			(171,009	)
NGLs		20,838			(6,905	)					51,757			(16,948	)
Crude Oil		11,961			(21,758	)					19,089			(31,472	)
Total change in fair value related to derivatives prior to settlement, a non-GAAP measure	$	(209,370	)	$	(125,803	)			$		(227,854	)	$	7,443

Transportation, gathering, processing and compression components:
Natural gas	$	158,637		$	167,367				$		320,297		$	337,208
NGLs		123,758			110,718						236,428			225,642
Oil		449			790						449			790
Total transportation, gathering, processing and compression, as reported	$	282,844		$	278,875				$		557,174		$	563,640

Natural gas, NGL and oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	314,051		$	305,044				$		648,504		$	638,465
NGL sales		234,695			131,288						434,184			284,570
Oil sales		32,796			32,426						62,806			77,748
Total	$	581,542		$	468,758		24	%			1,145,494			1,000,783		14	%

Production of oil and gas during the periods (a):
Natural gas (mcf)		131,886,931			151,127,582		-13	%			262,215,672			296,888,174		-12	%
NGL (bbl)		9,153,411			9,716,261		-6	%			17,896,355			19,349,296		-8	%
Oil (bbl)		777,067			720,125		8	%			1,535,058			1,588,422		-3	%
Gas equivalent (mcfe) (b)		191,469,799			213,745,898		-10	%			378,804,150			422,514,482		-10	%

Production of oil and gas – average per day (a):
Natural gas (mcf)		1,449,307			1,660,743		-13	%			1,448,705			1,631,254		-11	%
NGL (bbl)		100,587			106,772		-6	%			98,875			106,315		-7	%
Oil (bbl)		8,539			7,913		8	%			8,481			8,728		-3	%
Gas equivalent (mcfe) (b)		2,104,064			2,348,856		-10	%			2,092,841			2,321,508		-10	%

Average prices, excluding derivative settlements and before third party transportation costs:
Natural gas (mcf)	$	2.44		$	1.42		72	%	$		2.51		$	1.57		59	%
NGL (bbl)	$	27.92		$	12.80		118	%	$		27.15		$	13.83		96	%
Oil (bbl)	$	57.60		$	14.81		289	%	$		53.35		$	29.13		83	%
Gas equivalent (mcfe) (b)	$	3.25		$	1.63		99	%	$		3.23		$	1.85		75	%

Average prices, including derivative settlements before third party transportation costs: (c)
Natural gas (mcf)	$	2.38		$	2.02		18	%	$		2.47		$	2.15		15	%
NGL (bbl)	$	25.64		$	13.51		90	%	$		24.26		$	14.71		65	%
Oil (bbl)	$	42.20		$	45.03		-6	%	$		40.91		$	48.95		-16	%
Gas equivalent (mcfe) (b)	$	3.04		$	2.19		38	%	$		3.02		$	2.37		28	%

Average prices, including derivative settlements and after third party transportation costs: (d)
Natural gas (mcf)	$	1.18		$	0.91		29	%	$		1.25		$	1.01		23	%
NGL (bbl)	$	12.12		$	2.12		472	%	$		11.05		$	3.05		263	%
Oil (bbl)	$	41.63		$	43.93		-5	%	$		40.62		$	48.45		-16	%
Gas equivalent (mcfe) (b)	$	1.56		$	0.89		76	%	$		1.55		$	1.03		50	%

Transportation, gathering and compression expense per mcfe	$	1.48		$	1.30		13	%	$		1.47		$	1.33		10	%

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.
(c) Excluding third party transportation, gathering and compression costs.
(d) Net of transportation, gathering and compression costs.

RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP measure (Unaudited, in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

(Loss) income from operations before income taxes, as reported	$	(157,734	)	$	(189,849	)	$	(127,894	)	$	5,344
Adjustment for certain special items:
(Gain) loss on sale of assets		(2,506	)		426			(646	)		(121,673	)
Loss (gain) on ARO settlements		1			12			—			12
Change in fair value related to derivatives prior to settlement		209,370			125,803			227,854			(7,443	)
Abandonment and impairment of unproved properties		2,177			5,524			5,206			10,937
Loss (gain) on early extinguishment of debt		63			(8,991	)		98			(21,914	)
Impairment of proved property and other assets		—			—			—			77,000
Lawsuit settlements		118			776			557			1,591
Exit and termination costs		(15,946	)		10,297			(2,232	)		11,892
Brokered natural gas and marketing – non-cash stock-based compensation		443			168			893			581
Direct operating – non-cash stock-based compensation		340			434			667			884
Exploration expenses – non-cash stock-based compensation		362			372			748			702
General & administrative – non-cash stock-based compensation		9,382			9,179			18,787			17,208
Deferred compensation plan – non-cash adjustment		35,462			12,587			55,273			4,050

Income (loss) before income taxes, as adjusted		81,532			(33,262	)		179,311			(20,829	)

Income tax expense (benefit), as adjusted
Current		2,569			(3	)		2,737			(366	)
Deferred (a)		20,383			(8,315	)		44,828			(5,207	)

Net income (loss) excluding certain items, a non-GAAP measure	$	58,580		$	(24,944	)	$	131,746		$	(15,256	)

Non-GAAP income (loss) per common share
Basic	$	0.24		$	(0.10	)	$	0.54		$	(0.06	)
Diluted	$	0.24		$	(0.10	)	$	0.54		$	(0.06	)

Non-GAAP diluted shares outstanding, if dilutive		247,926			239,472			247,806			242,717

(a) Deferred taxes are estimated to be approximately 25% for 2021 and 2020.

RANGE RESOURCES CORPORATION

RECONCILIATION OF NET INCOME (LOSS), EXCLUDING CERTAIN ITEMS AND ADJUSTMENT EARNINGS PER SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

Net loss, as reported	$	(156,472	)	$	(167,583	)	$	(129,321	)	$	(1,388	)
Adjustment for certain special items:
(Gain) loss on sale of assets		(2,506	)		426			(646	)		(121,673	)
Loss (gain) on ARO settlements		1			12			—			12
Loss (gain) on early extinguishment of debt		63			(8,991	)		98			(21,914	)
Change in fair value related to derivatives prior to settlement		209,370			125,803			227,854			(7,443	)
Impairment of proved property		—			—			—			77,000
Abandonment and impairment of unproved properties		2,177			5,524			5,206			10,937
Lawsuit settlements		118			776			557			1,591
Exit and termination costs		(15,946	)		10,297			(2,232	)		11,892
Non-cash stock-based compensation		10,527			10,153			21,095			19,375
Deferred compensation plan		35,462			12,587			55,273			4,050
Tax impact		(24,214	)		(13,948	)		(46,138	)		12,305

Net income (loss) excluding certain items, a non-GAAP measure	$	58,580		$	(24,944	)	$	131,746		$	(15,256	)

Net loss per diluted share, as reported	$	(0.65	)	$	(0.70	)	$	(0.53	)	$	(0.01	)
Adjustment for certain special items per diluted share:
(Gain) loss on sale of assets		(0.01	)		0.00			(0.00	)		(0.50	)
Loss (gain) on ARO settlements		0.00			0.00			—			0.00
Loss (gain) on early extinguishment of debt		0.00			(0.04	)		0.00			(0.09	)
Change in fair value related to derivatives prior to settlement		0.86			0.53			0.94			(0.03	)
Impairment of proved property and other assets		—			—			—			0.32
Abandonment and impairment of unproved properties		0.01			0.02			0.02			0.05
Lawsuit settlements		0.00			0.00			0.00			0.01
Exit and termination costs		(0.07	)		0.04			(0.01	)		0.05
Non-cash stock-based compensation		0.04			0.04			0.09			0.08
Deferred compensation plan		0.15			0.05			0.23			0.02
Adjustment for rounding differences		0.01			0.02			(0.01	)		(0.01	)
Tax impact		(0.10	)		(0.06	)		(0.19	)		0.05

Net income (loss) per diluted share, excluding certain items, a non-GAAP measure	$	0.24		$	(0.10	)	$	0.54		$	(0.06	)

Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.24		$	(0.10	)	$	0.54		$	(0.06	)
Diluted	$	0.24		$	(0.10	)	$	0.54		$	(0.06	)

RANGE RESOURCES CORPORATION

RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

Revenues
Natural gas, NGL and oil sales, as reported	$	621,855		$	349,258		$	1,225,202		$	781,354
Derivative fair value (loss) income, as reported		(249,683	)		(6,303	)		(307,562	)		226,872
Less non-cash fair value loss (gain)		209,370			125,803			227,854			(7,443	)
Brokered natural gas and marketing and other, as reported		62,550			33,591			143,114			62,240
Less ARO settlement and other (gains) losses		(1,027	)		(282	)		(1,089	)		(542	)
Cash revenue applicable to production		643,065			502,067			1,287,519			1,062,481

Expenses
Direct operating, as reported		19,758			24,394			37,408			56,429
Less direct operating stock-based compensation		(340	)		(434	)		(667	)		(884	)
Transportation, gathering and compression, as reported		282,844			278,875			557,174			563,640
Production and ad valorem taxes, as reported		8,414			5,557			13,039			14,576
Brokered natural gas and marketing, as reported		69,004			38,161			141,339			70,785
Less brokered natural gas and marketing stock-based compensation		(443	)		(168	)		(893	)		(581	)
General and administrative, as reported		40,242			38,288			78,246			80,542
Less G&A stock-based compensation		(9,382	)		(9,179	)		(18,787	)		(17,208	)
Less lawsuit settlements		(118	)		(776	)		(557	)		(1,591	)
Interest expense, as reported		57,287			48,624			114,165			96,142
Less amortization of deferred financing costs		(2,322	)		(2,135	)		(4,609	)		(4,196	)
Cash expenses		464,944			421,207			915,858			857,654

Cash margin, a non-GAAP measure	$	178,121		$	80,860		$	371,661		$	204,827

Mmcfe produced during period		191,470			213,746			378,804			422,514

Cash margin per mcfe	$	0.93		$	0.38		$	0.98		$	0.48


RECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES TO CASH MARGIN
(Unaudited, in thousands, except per unit data)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

(Loss) income before income taxes, as reported	$	(157,734	)	$	(189,849	)	$	(127,894	)	$	5,344
Adjustments to reconcile (loss) income before income taxes to cash margin:
ARO settlements and other gains		(1,027	)		(282	)		(1,089	)		(542	)
Derivative fair value loss (income)		249,683			6,303			307,562			(226,872	)
Net cash receipts on derivative settlements		(40,313	)		119,500			(79,708	)		219,429
Exploration expense		4,666			7,655			9,818			14,402
Lawsuit settlements		118			776			557			1,591
Exit and termination costs		(15,946	)		10,297			(2,232	)		11,892
Deferred compensation plan		35,462			12,587			55,273			4,050
Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs)		10,527			10,153			21,095			19,375
Interest – amortization of deferred financing costs		2,322			2,135			4,609			4,196
Depletion, depreciation and amortization		90,629			104,626			179,012			207,612
(Gain) loss on sale of assets		(2,506	)		426			(646	)		(121,673	)
Loss (gain) on early extinguishment of debt		63			(8,991	)		98			(21,914	)
Impairment of proved property and other assets		—			—			—			77,000
Abandonment and impairment of unproved properties		2,177			5,524			5,206			10,937
Cash margin, a non-GAAP measure	$	178,121		$	80,860		$	371,661		$	204,827

July 26, 2021 4:46 pm

Carnival Corporation & plc Announces Closing of $2.4 Billion 4.0% First-Priority Senior Secured Notes Offering, Completing the Refinancing of a Portion of its Existing 11.5% Notes and Extending Maturities

PR Newswire

MIAMI, July 26, 2021 /PRNewswire/ — Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Corporation (the “Issuer”) has closed its private offering of $2,405.5 million aggregate principal amount of 4.000% First-Priority Senior Secured Notes due 2028 (the “New Notes”). The Issuer will be using the net proceeds from the offering of the New Notes to fund its previously announced tender offer to purchase up to $2,004,000,000 aggregate principal amount of 11.500% First Priority Senior Secured Notes due 2023 (the “2023 Notes”), the related consent solicitation, and the payment of accrued and unpaid interest on the 2023 Notes accepted for purchase and related fees and expenses. The offering completed the Issuer and Carnival plc’s financing condition for the tender of its 2023 Notes and the New Notes’ 4.000% interest rate will replace existing debt carrying an 11.500% coupon and generate $135 million of interest savings annually.

The New Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The New Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the New Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful. PJT Partners LP is serving as independent financial advisor to the Issuer and Carnival plc.

Forward Looking Statements

Some of the statements, estimates or projections contained in this press release are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to us, including some statements concerning the financing transactions described herein, future results, operations, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,” “goal,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate,” “outlook” and similar expressions of future intent or the negative of such terms.

Forward-looking statements include those statements that relate to our outlook and financial position including, but not limited to, statements regarding:

• Pricing	• Goodwill, ship and trademark fair values
• Booking levels	• Liquidity and credit ratings
• Occupancy	• Adjusted earnings per share
• Interest, tax and fuel expenses • Currency exchange rates • Estimates of ship depreciable lives and residual values	• Return to guest cruise operations • Impact of the COVID-19 coronavirus global pandemic on our financial condition and results of operations

Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. Additionally, many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 outbreak. It is not possible to predict or identify all such risks. There may be additional risks that we consider immaterial or which are unknown. These factors include, but are not limited to, the following:

COVID-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, which impacts our ability to obtain acceptable financing to fund resulting reductions in cash from operations. The current, and uncertain future, impact of the COVID-19 outbreak, including its effect on the ability or desire of people to travel (including on cruises), is expected to continue to impact our results, operations, outlooks, plans, goals, reputation, litigation, cash flows, liquidity, and stock price;
As a result of the COVID-19 outbreak, we may be out of compliance with one or more maintenance covenants in certain of our debt facilities, with the next testing date of November 30, 2022;
World events impacting the ability or desire of people to travel have and may continue to lead to a decline in demand for cruises;
Incidents concerning our ships, guests or the cruise vacation industry as well as adverse weather conditions and other natural disasters have in the past and may, in the future, impact the satisfaction of our guests and crew and lead to reputational damage;
Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-corruption, economic sanctions, trade protection and tax have in the past and may, in the future, lead to litigation, enforcement actions, fines, penalties, and reputational damage;
Breaches in data security and lapses in data privacy as well as disruptions and other damages to our principal offices, information technology operations and system networks, including the recent ransomware incidents, and failure to keep pace with developments in technology may adversely impact our business operations, the satisfaction of our guests and crew and may lead to reputational damage;
Ability to recruit, develop and retain qualified shipboard personnel who live away from home for extended periods of time may adversely impact our business operations, guest services and satisfaction;
Increases in fuel prices, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs;
Fluctuations in foreign currency exchange rates may adversely impact our financial results;
Overcapacity and competition in the cruise and land-based vacation industry may lead to a decline in our cruise sales, pricing and destination options;
Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests; and
the risk factors included in Carnival Corporation’s and Carnival plc’s Annual Report on Form 10-K filed with the SEC on January 26, 2021 and Carnival Corporation’s and Carnival plc’s Quarterly Reports on Form 10-Q filed with the SEC on April 7, 2021 and June 28, 2021.

The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood.

Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.

Carnival Corporation & plc

Carnival Corporation & plc is one of the world’s largest leisure travel companies with a portfolio of nine of the world’s leading cruise lines sailing to all seven continents. With operations in North America, Australia, Europe and Asia, its portfolio features Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.

View original content:https://www.prnewswire.com/news-releases/carnival-corporation–plc-announces-closing-of-2-4-billion-4-0-first-priority-senior-secured-notes-offering-completing-the-refinancing-of-a-portion-of-its-existing-11-5-notes-and-extending-maturities-301341463.html

SOURCE Carnival Corporation & plc

July 26, 2021 4:43 pm

Advanced Emissions Solutions to Host Second Quarter 2021 Conference Call on August 10th

GREENWOOD VILLAGE, Colo., July 26, 2021 (GLOBE NEWSWIRE) — Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the “Company” or “ADES”) today announced the Company expects to release its second quarter 2021 financial results and file its Quarterly Report on Form 10-Q for the period ended June 30, 2021 after market close on Monday, August 9, 2021. A conference call to discuss the Company’s financial performance is scheduled to begin at 9:00 a.m. Eastern Time on Tuesday, August 10, 2021.

The conference call webcast information will be available via the Investor Resources section of ADES’s website at www.advancedemissionssolutions.com. Interested parties may also participate in the call by registering at http://www.directeventreg.com/registration/event/8253618. A supplemental investor presentation will be available on the Company’s Investor Resources section of the website prior to the start of the conference call. As part of the conference call, ADES will conduct a question and answer session. Investors are invited to email their questions in advance to [email protected].

About Advanced Emissions Solutions, Inc.

Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.

ADA brings together ADA Carbon Solutions, LLC, a leading provider of powder activated carbon (“PAC”) and ADA-ES, Inc., the providers of ADA® M-Prove™ Technology. We provide products and services to control mercury and other contaminants at coal-fired power generators and other industrial companies. Our broad suite of complementary products control contaminants and help our customers meet their compliance objectives consistently and reliably.

CarbPure Technologies LLC, (“CarbPure”), formed in 2015 provides high-quality PAC and granular activated carbon ideally suited for treatment of potable water and wastewater. Our affiliate company, ADA Carbon Solutions, LLC manufactures the products for CarbPure.

Tinuum Group, LLC (“Tinuum Group”) is a 42.5% owned joint venture by ADA that provides patented Refined Coal (“RC”) technologies to enhance combustion of and reduce emissions of NOx and mercury from coal-fired power plants.

Source: Advanced Emissions Solutions, Inc.

Investor Contact:

Alpha IR Group
Ryan Coleman or Chris Hodges
312-445-2870
[email protected]

July 26, 2021 4:38 pm

Sun Communities, Inc. Reports 2021 Second Quarter Results

NEWS RELEASE

July 26, 2021

Sun Communities, Inc. Reports 2021 Second Quarter Results

Southfield, MI, July 26, 2021 (GLOBE NEWSWIRE) — Sun Communities, Inc. (NYSE: SUI) (the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas, (collectively, the “properties”), today reported its second quarter results for 2021.

Financial Results for the Quarter and Six Months Ended June 30, 2021

For the quarter ended June 30, 2021, total revenues increased $300.6 million, or 99.1 percent, to approximately $603.9 million compared to $303.3 million for the same period in 2020. Net income attributable to common stockholders increased $51.9 million or 88.0 percent, to approximately $110.8 million, or $0.98 per diluted common share, compared to net income attributable to common stockholders of $58.9 million, or $0.61 per diluted common share, for the same period in 2020.

For the six months ended June 30, 2021, total revenues increased $432.3 million, or 70.5 percent, to $1.0 billion compared to approximately $613.6 million for the same period in 2020. Net income attributable to common stockholders increased $92.7 million or 216.5 percent, to approximately $135.6 million, or $1.22 per diluted common share, compared to net income attributable to common stockholders of $42.8 million, or $0.45 per diluted common share, for the same period in 2020.

Non-GAAP Financial Measures and Portfolio Performance

Core Funds from Operations (“Core FFO”)
⁽¹⁾ for the quarter ended June 30, 2021, was $1.80 per diluted share and OP unit (“Share”) as compared to $1.12 in the corresponding period in 2020, a 60.7 percent increase.
Same Community
⁽²⁾
Net Operating Income (“NOI”)
⁽¹⁾ increased by 21.6 percent for the quarter ended June 30, 2021, as compared to the corresponding period in 2020.
Home Sales Volume increased 89.5 percent to 1,158 homes for the quarter ended June 30, 2021, as compared to 611 homes in the same period in 2020.
Acquisitions totaled $719.4 million during and subsequent to the quarter ended June 30, 2021, including 10 MH communities, two RV resorts and six marinas.

Gary Shiffman, Chief Executive Officer stated, “Sun’s ongoing strong momentum continued through the second quarter, as we saw robust performance across RV, Manufactured Housing and Marinas. Our RV business is demonstrating the growing appeal of an RV vacation for consumers, marinas are in the midst of an active boating season and our results continue to track ahead of our underwriting, and in our manufactured housing business, we are benefiting from sustained demand for affordable housing. Furthermore, our RV forward bookings have continued to accelerate and we are pleased to again increase our guidance for the year.”

Mr. Shiffman continued, “We have remained active in terms of new site deliveries and have more than 9,400 sites available for development, representing an attractive source of growth and value creation over time. We also deployed over $719 million in acquisitions, including six marinas as we begin to realize the meaningful consolidation opportunity we have in the marina industry. To support this ongoing growth, we are pleased to have received investment grade ratings and completed our inaugural unsecured bond issuance as we issued $600 million in senior unsecured notes. This additional financing option provides Sun enhanced financial flexibility to efficiently match fund our investment activities as we continue to realize compelling growth opportunities across all of our businesses.”

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.4 percent at June 30, 2021, compared to 97.3 percent at June 30, 2020, an increase of 10 basis points.

During the quarter ended June 30, 2021, MH and annual RV revenue producing sites increased by 583 sites, as compared to an increase of 851 revenue producing sites during the quarter ended June 30, 2020.

During the six months ended June 30, 2021, MH and annual RV revenue producing sites increased by 1,097 sites, as compared to an increase of 1,151 revenue producing sites during the six months ended June 30, 2020.

Same Community
⁽²⁾
Results

For the 405 MH and RV properties owned and operated by the Company since January 1, 2020, the following table reflects the NOI⁽¹⁾ percentage increases, in total and by segment, for the quarter and six months ended June 30, 2021:

	Quarter Ended June 30, 2021
	Total Same Community		MH		RV
Revenue	22.5	%	6.9	%	64.4	%
Expense	24.7	%	11.8	%	41.9	%
NOI	21.6	%	5.4	%	85.1	%

	Six Mont hs Ended June 30, 2021
	Total Same Community		MH		RV
Revenue	12.8	%	6.0	%	30.2	%
Expense	15.2	%	8.7	%	24.2	%
NOI	11.8	%	5.1	%	34.8	%

Same Community adjusted occupancy⁽³⁾ increased to 98.8 percent at June 30, 2021 from 97.2 percent at June 30, 2020.

Home Sales

During the quarter ended June 30, 2021, the Company sold 1,158 homes as compared to 611 homes in the same period in 2020, an increase of 89.5 percent. The Company sold 227 and 140 new homes for the quarters ended June 30, 2021 and 2020, respectively, an increase of 62.1 percent. Pre-owned home sales were 931 in the second quarter 2021 as compared to 471 in the same period in 2020, an increase of 97.7 percent.

During the six months ended June 30, 2021, the Company sold 1,993 homes as compared to 1,374 homes in the same period in 2020, an increase of 45.1 percent. The Company sold 376 and 259 new homes for the six months ended June 30, 2021 and 2020, respectively, an increase of 45.2 percent. Pre-owned home sales were 1,617 in the six months ended June 30, 2021 as compared to 1,115 in the same period in 2020, an increase of 45.0 percent.

Marina Results

Marina NOI was $62.8 million and $94.2 million for the quarter and six months ended June 30, 2021, respectively. Refer to page 15 for additional information regarding the marina portfolio operating results.

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended June 30, 2021, the Company acquired the following communities, resorts and marinas:

Property Name

Property Type

Sites,

Wet Slips and

Dry Storage Spaces

Development Sites

State / Province

Total

Purchase Price

(in millions)

Month Acquired

ThemeWorld RV Resort

148

—

25.0

April

Sylvan Glen Estates^(a)

476

—

24.0

April

Shelter Island Boatyard

Marina

N/A

10.0

May

Lauderdale Marine Center

Marina

202

N/A

340.2

May

Apponaug Harbor^(b)

Marina

378

N/A

6.6

June

Cabrillo Isle^(c)

Marina

483

N/A

46.9

June

Marathon Marina

Marina

147

N/A

19.1

June

Subtotal

1,889

—

471.8

Acquisitions subsequent to quarter end

Allen Harbor

Marina

165

N/A

4.0

July

Cisco Grove Campground & RV

407

6.6

July

Four Leaf Portfolio^(d)

2,714

171

MI / IN

215.0

July

Harborage Yacht Club

Marina

300

N/A

22.0

July

Subtotal

3,197

578

247.6

Total acquisitions

5,086

578

719.4

^(a) In conjunction with the acquisition, the Company issued 240,000 Series J preferred OP units.

^(b) Combined with an existing adjacent marina.

^(c) Acquired in connection with Safe Harbor Marinas acquisition. Transfer of the marinas was contingent on receiving third party consent.

^(d) Contains nine MH communities.

During and subsequent to the six months ended June 30, 2021 the Company acquired 28 properties totaling 7,666 sites, wet slips and dry storage spaces, and 578 sites for development for a total purchase price of $853.4 million.

Subsequent to the quarter ended June 30, 2021, the Company sold two MH communities located in Indiana and Missouri for $67.5 million. The assets and liabilities associated with the transaction were classified as held for sale on the Consolidated Balance Sheets as of June 30, 2021.

Construction Activity

During the quarter ended June 30, 2021, the Company completed the construction of over 100 sites in two ground-up developments and over 120 expansion sites in two MH communities and one RV resort.

Year to date June 30, 2021, the Company completed the construction of over 350 sites in three ground-up development and over 230 expansion sites in three MH communities and one RV resort.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITE
MS

Debt

As of June 30, 2021, the Company had approximately $4.3 billion in debt outstanding. The weighted average interest rate was 3.5 percent and the weighted average maturity was 10.4 years. At June 30, 2021, the Company’s net debt to trailing twelve month Recurring EBITDA⁽¹⁾ ratio was 5.1 times. The Company had $103.5 million of unrestricted cash on hand.

Senior Unsecured Notes

On June 14, 2021, the Company received investment grade ratings of BBB and Baa3 with a stable outlook from S&P Global and Moody’s, respectively.

On June 28, 2021, Sun Communities Operating Limited Partnership (“SCOLP”), the Company’s operating partnership, issued $600.0 million of senior unsecured notes with an interest rate of 2.7 percent and a ten-year term, due 2031. The net proceeds from the offering were $592.4 million, after deducting underwriters’ discount and estimated offering expenses.

Credit Agreement

On June 14, 2021, SCOLP, as borrower, and the Company, as guarantor, entered into a new credit agreement with certain lenders. The new credit agreement combines and replaces SCOLP’s $750.0 million credit facility which was scheduled to mature May 21, 2023, and the $1.8 billion credit facility of the Company’s marina subsidiary, Safe Harbor Marinas, LLC (the “Safe Harbor Facility”) which was scheduled to mature on October 11, 2024. The Safe Harbor Facility was terminated in connection with the execution of the new credit agreement and all amounts due and outstanding were repaid on or prior to the date of the New Credit Agreement. The Company recognized a loss on extinguishment of debt in its Consolidated Statement of Operations related to the termination of these prior credit facilities of $0.2 million and $7.9 million, respectively.

Pursuant to the New Credit Agreement, SCOLP may borrow up to $2.0 billion under a revolving loan (the “New Credit Facility”) to fund the business of SCOLP and all its subsidiaries. The New Credit Facility has a four-year term ending June 14, 2025. Subject to the satisfaction of certain conditions, the term may be extended for two additional six-month periods, and additional borrowings not to exceed $1.0 billion is permitted. However, the maturity date with respect to $500.0 million of available borrowing under the New Credit Facility is October 11, 2024, which may not be extended. The New Credit Facility bears interest at a floating rate based on the Adjusted Eurocurrency Rate or Australian Bank Bill Swap Bid Rate (BBSY), plus a margin which can range from 0.725 percent to 1.400 percent. As of June 30, 2021, the margin based on our credit ratings was 0.850 percent on the New Credit Facility. The Company had $190.3 million of borrowings on the New Credit Facility as of June 30, 2021.
Equity Transactions

Pu
blic Equity Offering

In May and June 2021, the Company completed the physical settlement of the remaining 4,050,000 shares offered under the forward sale agreement pursuant to the Company’s March 2021 equity offering of 8,050,000 shares. Net proceeds of $539.7 million after deducting expenses related to the offering, were used to acquire assets and pay down the Safe Harbor Facility.

At the Market Offering Sales Agreements

In June 2021, the Company entered into an At the Market Offering (ATM) Sales Agreement (the “Sales Agreement”) with certain sales agents, forward sellers, pursuant to which the Company may sell, from time to time, up to an aggregate gross sales price of $500.0 million of its common stock. No shares were sold during the quarter ending June 30, 2021 under the ATM program. Upon entering into the Sales Agreement, the Company simultaneously terminated its previous ATM sales agreement entered into in July 2017.

2021 GU
IDANCE

The Company is providing revised or initial 2021 guidance for the following metrics:

			Previous Range		Revised Range
			FY 2021E		FY 2021E		3Q 2021E
Basic earnings per share			$1.68 – $1.84		$2.24 – $2.36		$0.90 – $0.96
Core FFO⁽¹⁾ per fully diluted Share			$5.92 – $6.08		$6.25 – $6.37		$2.00 – $2.06

	1Q21		2Q21		3Q21		4Q21
Seasonality of Core FFO⁽¹⁾per fully diluted Share	20.0	%	28.5	%	32.1	%	19.4	%

Seasonality of Core FFO⁽¹⁾per fully diluted Share is based off of the midpoint of full year guidance.

	Previous Range	Revised Range
	FY 2021E	FY 2021E	3Q 2021E
Same Community NOI⁽¹⁾ growth	7.5% – 8.5%	9.9% – 10.7%	11.2% – 12.0%

Guidance estimates include acquisitions completed through the date of this release and exclude any prospective acquisitions or capital markets activity.

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. The estimates and assumptions are forward looking based on the Company’s current assessment of economic and market conditions, as well as other risks outlined below under the caption “Cautionary Statement Regarding Forward-Looking Statements.”

EARNINGS CONFERENCE CALL

A conference call to discuss second quarter results will be held on Tuesday, July 27, 2021 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through August 10, 2021 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13720116. The conference call will be available live on Sun Communities’ website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of June 30, 2021, owned, operated, or had an interest in a portfolio of 569 developed MH, RV and marina properties comprising over 153,300 developed sites and nearly 41,300 wet slips and dry storage spaces in 39 states and Ontario, Canada.

For more information about Sun Communities, Inc., please visit www.suncommunities.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as “forecasts,” “intends,” “intend,” “intended,” “goal,” “estimate,” “estimates,” “expects,” “expect,” “expected,” “project,” “projected,” “projections,” “plans,” “predicts,” “potential,” “seeks,” “anticipates,” “anticipated,” “should,” “could,” “may,” “will,” “designed to,” “foreseeable future,” “believe,” “believes,” “scheduled,” “guidance,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the Company’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in the Company’s other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:

outbreaks of disease, including the COVID-19 pandemic, and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations;
changes in general economic conditions, the real estate industry and the markets in which the Company operates;
difficulties in the Company’s ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
the Company’s liquidity and refinancing demands;
the Company’s ability to obtain or refinance maturing debt;
the Company’s ability to maintain compliance with covenants contained in its debt facilities and its senior unsecured notes;
availability of capital;
changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;
the Company’s ability to maintain rental rates and occupancy levels;
the Company’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
increases in interest rates and operating costs, including insurance premiums and real property taxes;
risks related to natural disasters such as hurricanes, earthquakes, floods and wildfires;
general volatility of the capital markets and the market price of shares of the Company’s capital stock;
the Company’s ability to maintain its status as a REIT;
changes in real estate and zoning laws and regulations;
legislative or regulatory changes, including changes to laws governing the taxation of REITs;
litigation, judgments or settlements;
competitive market forces;
the ability of purchasers of manufactured homes and boats to obtain financing; and
the level of repossessions by manufactured home lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this press release, whether as a result of new information, future events, changes in its expectations or otherwise, except as required by law.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by these cautionary statements.

Investor Information

RESEARCH COVERAGE

Firm	Analyst	Phone	Email
Bank of America Merrill Lynch	Joshua Dennerlein	(646) 855-1681	[email protected]
Berenberg Capital Markets	Keegan Carl	(646) 949-9052	[email protected]
BMO Capital Markets	John Kim	(212) 885-4115	[email protected]
Citi Research	Michael Bilerman	(212) 816-1383	[email protected]
	Nicholas Joseph	(212) 816-1909	[email protected]
Evercore ISI	Steve Sakwa	(212) 446-9462	[email protected]
	Samir Khanal	(212) 888-3796	[email protected]
Green Street Advisors	John Pawlowski	(949) 640-8780	[email protected]
Robert W. Baird & Co.	Wesley Golladay	(216) 737-7510	[email protected]
RBC Capital Markets	Brad Heffern	(512) 708-6311	[email protected]
UBS	Michael Goldsmith	(212) 713-2951	[email protected]
Wells Fargo	Todd Stender	(562) 637-1371	[email protected]


INQUIRIES

Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department.

At Our Website	www.suncommunities.com

By Email	[email protected]

By Phone	(248) 208-2500

Portfolio Overview

(As of June 30, 2021)

Financial and Operating Highlights

(amounts in thousands, except for *)

	Quarter Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
Financial Information
Total revenues	$	603,863	$	442,015	$	384,265	$	400,514	$	303,266
Net income	$	120,849	$	27,941	$	9,818	$	89,756	$	63,355
Net income attributable to Sun Communities Inc. common stockholders	$	110,770	$	24,782	$	7,586	$	81,204	$	58,910
Basic earnings per share*	$	0.98	$	0.23	$	0.07	$	0.83	$	0.61
Diluted earnings per share*	$	0.98	$	0.23	$	0.07	$	0.83	$	0.61

Cash distributions declared per common share*	$	0.83	$	0.83	$	0.79	$	0.79	$	0.79

Recurring EBITDA⁽¹⁾	$	268,225	$	190,830	$	168,527	$	199,321	$	148,650
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	198,017	$	135,925	$	110,849	$	165,209	$	118,092
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	209,620	$	141,036	$	124,872	$	162,624	$	110,325
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾per share – fully diluted*	$	1.70	$	1.22	$	1.03	$	1.63	$	1.20
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾ per share – fully diluted*	$	1.80	$	1.26	$	1.16	$	1.60	$	1.12

Balance Sheet
Total assets	$	12,040,990	$	11,454,209	$	11,206,586	$	8,335,717	$	8,348,659
Total debt	$	4,311,175	$	4,417,935	$	4,757,076	$	3,340,613	$	3,390,771
Total liabilities	$	5,099,563	$	5,101,512	$	5,314,879	$	3,791,922	$	3,845,308

	Quarter Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
Operating Information*
Properties	569		562		552		432		426

Manufactured home sites	97,448		96,876		96,688		95,209		94,232
Annual RV sites	28,807		28,441		27,564		26,817		26,240
Transient RV sites	27,032		26,295		25,043		23,728		22,360
Total sites	153,287		151,612		149,295		145,754		142,832
Marina wet slips and dry storage spaces	41,275		38,753		38,152		N/A		N/A

MH occupancy	96.7	%	96.5	%	96.6	%	96.4	%	96.5	%
Annual RV occupancy	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Blended MH and annual RV occupancy	97.4	%	97.3	%	97.3	%	97.2	%	97.3	%

New home sales	227		149		156		155		140
Pre-owned home sales	931		686		626		555		471
Total home sales	1,158		835		782		710		611

	Quarter Ended
	6/30/2021	3/31/2021	12/31/2020	9/30/2020	6/30/2020
Revenue Producing Site Gains ⁽⁵⁾
MH net leased sites	226	127	247	349	759
RV net leased sites	357	387	331	427	92
Total net leased sites	583	514	578	776	851

Consolidated Balance Sheets

(amounts in
thousands)

	June 30, 2021			December 31, 2020
Assets
Land	$	2,412,629		$	2,119,364
Land improvements and buildings	8,995,041			8,480,597
Rental homes and improvements	622,397			637,603
Furniture, fixtures and equipment	529,549			447,039
Investment property	12,559,616			11,684,603
Accumulated depreciation	(2,165,564		)	(1,968,812		)
Investment property, net	10,394,052			9,715,791
Cash, cash equivalents and restricted cash	119,612			92,641
Marketable securities	153,049			124,726
Inventory of manufactured homes	43,686			46,643
Notes and other receivables, net	262,333			221,650
Goodwill	448,317			428,833
Other intangible assets, net	295,663			305,611
Other assets, net	324,278			270,691
Tot al Assets	$	12,040,990		$	11,206,586
Liabilities
Secured debt	$	3,457,734		$	3,489,983
Unsecured debt	853,441			1,267,093
Distributions payable	98,429			86,988
Advanced reservation deposits and rent	290,913			187,730
Accrued expenses and accounts payable	214,200			148,435
Other liabilities	184,846			134,650
Tot al Liabilities	5,099,563			5,314,879
Commitments and contingencies
Temporary equity	285,603			264,379
Stockholders’ Equity
Common stock	1,159			1,076
Additional paid-in capital	8,163,095			7,087,658
Accumulated other comprehensive income	5,197			3,178
Distributions in excess of accumulated earnings	(1,614,243		)	(1,566,636		)
Total Sun Communities, Inc. stockholders’ equity	6,555,208			5,525,276
Noncontrolling interests
Common and preferred OP units	82,865			85,968
Consolidated variable interest entities	17,751			16,084
Total noncontrolling interests	100,616			102,052
Total Stoc kholders’ Equity	6,655,824			5,627,328
Total Liab ilities, Temporary Equity and Stockholders’ Equity	$	12,040,990		$	11,206,586

Statements of Operations – Quarter to Date and Year to Date Comparison

(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended												Six Months Ended
	June 30, 2021			June 30, 2020			Change			% Change			June 30, 2021			June 30, 2020			Change			% Change
Revenues
Real property (excluding transient)	$	328,907		$	225,413		$	103,494		45.9		%	$	626,984		$	453,415		$	173,569		38.3		%
Real property – transient	76,998			25,714			51,284			199.4		%	109,534			56,061			53,473			95.4		%
Home sales	81,848			38,530			43,318			112.4		%	134,047			79,117			54,930			69.4		%
Service, retail, dining and entertainment	106,452			7,700			98,752			N/M			157,064			12,803			144,261			N/M
Interest	2,719			2,635			84			3.2		%	5,350			4,985			365			7.3		%
Brokerage commissions and other, net	6,939			3,274			3,665			111.9		%	12,899			7,187			5,712			79.5		%
Total Revenues	603,863			303,266			300,597			99.1		%	1,045,878			613,568			432,310			70.5		%
Expenses
Property operating and maintenance	129,961			70,804			59,157			83.6		%	233,514			140,638			92,876			66.0		%
Real estate tax	23,202			17,723			5,479			30.9		%	45,610			34,899			10,711			30.7		%
Home costs and selling	58,763			32,051			26,712			83.3		%	100,353			66,090			34,263			51.8		%
Service, retail, dining and entertainment	78,585			7,242			71,343			N/M			124,016			13,924			110,092			N/M
General and administrative	45,127			26,527			18,600			70.1		%	83,330			51,876			31,454			60.6		%
Catastrophic event-related charges, net	355			(566		)	921			162.7		%	2,769			40			2,729			N/M
Business combination, net	(201		)	—			(201		)	N/A			1,031			—			1,031			N/A
Depreciation and amortization	126,423			87,265			39,158			44.9		%	249,727			170,954			78,773			46.1		%
Loss on extinguishment of debt	8,108			1,930			6,178			320.1		%	8,108			5,209			2,899			55.7		%
Interest	37,681			31,428			6,253			19.9		%	77,198			63,844			13,354			20.9		%
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			(1		)	(0.1	)	%	2,077			2,083			(6		)	(0.3	)	%
Total Expenses	509,045			275,446			233,599			84.8		%	927,733			549,557			378,176			68.8		%
Income Before Other Items	94,818			27,820			66,998			240.8		%	118,145			64,011			54,134			84.6		%
Gain / (loss) on remeasurement of marketable securities	27,494			24,519			2,975			12.1		%	31,155			(4,128		)	35,283			N/M
Gain / (loss) on foreign currency translation	(264		)	10,374			(10,638		)	(102.5	)	%	(239		)	(7,105		)	6,866			(96.6	)	%
Other expense, net⁽⁶⁾	(660		)	(821		)	161			19.6		%	(1,759		)	(1,793		)	34			(1.9	)	%
Gain / (loss) on remeasurement of notes receivable	93			246			(153		)	(62.2	)	%	469			(1,866		)	2,335			N/M
Income from nonconsolidated affiliates	794			92			702			N/M			1,965			144			1,821			N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates	(115		)	1,132			(1,247		)	(110.2	)	%	(11		)	(1,059		)	1,048			(99.0	)	%
Current tax expense	(1,245		)	(119		)	(1,126		)	N/M			(1,016		)	(569		)	(447		)	78.6		%
Deferred tax benefit / (expense)	(66		)	112			(178		)	N/M			81			242			(161		)	(66.5	)	%
Net Income	120,849			63,355			57,494			90.7		%	148,790			47,877			100,913			210.8		%
Less: Preferred return to preferred OP units / equity	3,035			1,584			1,451			91.6		%	5,899			3,154			2,745			87.0		%
Less: Income attributable to noncontrolling interests	7,044			2,861			4,183			146.2		%	7,339			1,899			5,440			286.5		%
Net Income Attribu table to Sun Communities, Inc.	$	110,770		$	58,910		$	51,860		88.0		%	$	135,552		$	42,824		$	92,728		216.5		%

Weighted average common shares outstanding – basic	112,082			95,859			16,223			16.9		%	110,007			94,134			15,873			16.9		%
Weighted average common shares outstanding – diluted	112,082			95,860			16,222			16.9		%	112,593			94,525			18,068			19.1		%

Basic earnings per share	$	0.98		$	0.61		$	0.37		60.7		%	$	1.22		$	0.45		$	0.77		171.1		%
Diluted earnings per share	$	0.98		$	0.61		$	0.37		60.7		%	$	1.22		$	0.45		$	0.77		171.1		%

N/M = Percentage change is not meaningful.

Outstanding Securities and Capitalization

(amounts in
thousands except for *)

Outstanding Securities – As of June 30, 2021

	Number of Units / Shares Outstanding	Conversion Rate*	If Converted ⁽¹⁾	Issuance Price Per Unit*		Annual Distribution Rate*
Non-convertible Securities
Common shares	115,889	N/A	N/A	N/A		$3.32^

Convertible Securities
Common OP units	2,569	1.0000	2,569	N/A		Mirrors common shares distributions

Series A-1 preferred OP units	288	2.4390	703	$	100	6.00	%
Series A-3 preferred OP units	40	1.8605	75	$	100	4.50	%
Series C preferred OP units	306	1.1100	340	$	100	5.00	%
Series D preferred OP units	489	0.8000	391	$	100	4.00	%
Series E preferred OP units	90	0.6897	62	$	100	5.25	%
Series F preferred OP units	90	0.6250	56	$	100	3.00	%
Series G preferred OP units	241	0.6452	155	$	100	3.20	%
Series H preferred OP units	581	0.6098	355	$	100	3.00	%
Series I preferred OP units	922	0.6098	562	$	100	3.00	%
Series J preferred OP units	240	0.6061	145	$	100	2.85	%

^ Annual distribution is based on the last quarterly distribution annualized.

(1) Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

Capitalization – As of June 30, 2021

Equity	Shares	Share Price*		Total
Common shares	115,889	$	171.40	$	19,863,375
Common OP units	2,569	$	171.40	440,327
Subtotal	118,458			$	20,303,702

Preferred OP units as converted	2,844	$	171.40	487,462
Total diluted shares outstanding	121,302			$	20,791,164

Debt
Secured debt				$	3,457,734
Unsecured debt				853,441
Total debt				$	4,311,175

Total Capitalization				$	25,102,339

Reconciliations to Non-GAAP Financial Measures

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO
⁽¹⁾

(amounts in thousands except for per share data)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Adjustments
Depreciation and amortization	126,227			87,296			249,303			171,048
Depreciation on nonconsolidated affiliates	31			19			61			19
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
Income attributable to noncontrolling interests	5,033			1,942			4,886			1,646
Preferred return to preferred OP units	478			—			958			1,000
Interest expense on Aspen preferred OP units	514			—			1,028			—
Gain on disposition of assets, net	(17,564		)	(4,178		)	(25,719		)	(9,740		)
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible S ecurities ⁽¹⁾⁽⁴⁾	$	198,017		$	118,092		$	334,456		$	213,850

Adjustments
Business combination expense and other acquisition related costs⁽⁷⁾	2,284			504			4,237			889
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Catastrophic event-related charges, net	364			(567		)	2,778			39
Loss of earnings – catastrophic event-related	—			—			200			300
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net	517			552			1,233			854
Deferred tax (benefits) / expenses	66			188			(81		)	58
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities ⁽¹⁾⁽⁴⁾	$	209,620		$	110,325		$	351,170		$	228,304

Weighted average common shares outstanding – basic	112,082			95,859			110,007			94,134
Add
Common stock issuable upon conversion of stock options	—			1			—			1
Restricted stock	580			305			372			390
Common OP units	2,577			2,448			2,586			2,430
Common stock issuable upon conversion of certain preferred OP units	1,174			—			1,180			815
Weighted Average Common Shares Outstanding – Fully Diluted	116,413			98,613			114,145			97,770

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities ⁽¹⁾⁽⁴⁾ Per Share – Fully Diluted	$	1.70		$	1.20		$	2.93		$	2.19

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities ⁽¹⁾⁽⁴⁾ Per Share – Fully Diluted	$	1.80		$	1.12		$	3.08		$	2.34

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to NOI
⁽¹⁾

(amounts in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Interest income	(2,719		)	(2,635		)	(5,350		)	(4,985		)
Brokerage commissions and other revenues, net	(6,939		)	(3,274		)	(12,899		)	(7,187		)
General and administrative expense	45,127			26,527			83,330			51,876
Catastrophic event-related charges, net	355			(566		)	2,769			40
Business combination expense, net	(201		)	—			1,031			—
Depreciation and amortization	126,423			87,265			249,727			170,954
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Interest expense	37,681			31,428			77,198			63,844
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			2,077			2,083
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net⁽⁶⁾	660			821			1,759			1,793
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
Income from nonconsolidated affiliates	(794		)	(92		)	(1,965		)	(144		)
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
Current tax expense	1,245			119			1,016			569
Deferred tax (benefit) / expense	66			(112		)	(81		)	(242		)
Preferred return to preferred OP units / equity	3,035			1,584			5,899			3,154
Income attributable to noncontrolling interests	7,044			2,861			7,339			1,899
NOI ⁽¹⁾	$	303,694		$	169,537		$	524,136		$	345,845

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Real Property NOI⁽¹⁾	$	252,742	$	162,600	$	457,394	$	333,939
Home Sales NOI⁽¹⁾	23,085		6,479		33,694		13,027
Service, retail, dining and entertainment NOI⁽¹⁾	27,867		458		33,048		(1,121		)
NOI ⁽¹⁾	$	303,694	$	169,537	$	524,136	$	345,845

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to Recurring EBITDA
⁽¹⁾

(amounts in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770		$	58,910		$	135,552		$	42,824
Adjustments
Depreciation and amortization	126,423			87,265			249,727			170,954
Loss on extinguishment of debt	8,108			1,930			8,108			5,209
Interest expense	37,681			31,428			77,198			63,844
Interest on mandatorily redeemable preferred OP units / equity	1,041			1,042			2,077			2,083
Current tax expense	1,245			119			1,016			569
Deferred tax (benefit) / expense	66			(112		)	(81		)	(242		)
Income from nonconsolidated affiliates	(794		)	(92		)	(1,965		)	(144		)
Less: Gain on dispositions of assets, net	(17,564		)	(4,178		)	(25,719		)	(9,740		)
EBITDA re ⁽¹⁾	$	266,976		$	176,312		$	445,913		$	275,357
Adjustments
Catastrophic event-related charges, net	355			(566		)	2,769			40
Business combination expense	(201		)	—			1,031			—
(Gain) / loss on remeasurement of marketable securities	(27,494		)	(24,519		)	(31,155		)	4,128
(Gain) / loss on foreign currency translation	264			(10,374		)	239			7,105
Other expense, net⁽⁶⁾	660			821			1,759			1,793
(Gain) / loss on remeasurement of notes receivable	(93		)	(246		)	(469		)	1,866
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115			(1,132		)	11			1,059
Preferred return to preferred OP units / equity	3,035			1,584			5,899			3,154
Income attributable to noncontrolling interests	7,044			2,861			7,339			1,899
Plus: Gain on dispositions of assets, net	17,564			4,178			25,719			9,740
Recurring EBITDA ⁽¹⁾	$	268,225		$	148,919		$	459,055		$	306,141

Non-GAAP and Other Financial Measures

Debt Analysis

(amounts in thousands)

	Quarter Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Debt Outstanding
Mortgage term loans	$	3,418,097		$	3,430,420		$	3,444,967		$	3,191,380		$	3,205,507
Collateralized term loan	39,637			42,510			45,016			47,546			50,006
Total secured debt	3,457,734			3,472,930			3,489,983			3,238,926			3,255,513
Senior unsecured notes	591,688			—			—			—			—
Line of credit and other debt	191,841			875,093			1,197,181			31,775			65,346
Preferred Equity – Sun NG Resorts – mandatorily redeemable	35,249			35,249			35,249			35,249			35,249
Preferred OP units – mandatorily redeemable	34,663			34,663			34,663			34,663			34,663
Total unsecured debt	853,441			945,005			1,267,093			101,687			135,258
Total debt	$	4,311,175		$	4,417,935		$	4,757,076		$	3,340,613		$	3,390,771

% Fixed / Floating
Fixed	94.7		%	79.3		%	74.0		%	97.6		%	96.6		%
Floating	5.3		%	20.7		%	26.0		%	2.4		%	3.4		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Weighted Average Interest Rates
Mortgage term loans	3.78		%	3.78		%	3.78		%	3.88		%	3.88		%
Collateralized term loan	1.30		%	1.29		%	1.31		%	1.31		%	1.31		%
Senior unsecured notes	2.70		%	—		%	—		%	—		%	—		%
Line of credit and other debt⁽⁸⁾	0.93		%	1.77		%	2.11		%	1.34		%	2.57		%
Preferred Equity – Sun NG Resorts – mandatorily redeemable	6.00		%	6.00		%	6.00		%	6.00		%	6.00		%
Preferred OP units – mandatorily redeemable	5.93		%	5.93		%	5.93		%	5.93		%	5.93		%
Total average	3.52		%	3.39		%	3.37		%	3.86		%	3.86		%

Debt Ratios
Net Debt / Recurring EBITDA⁽¹⁾ (TTM)	5.1			6.1			6.9			5.0			4.8
Net Debt / Enterprise Value	16.8		%	19.7		%	21.4		%	18.3		%	17.8		%
Net Debt / Gross Assets	29.6		%	31.8		%	35.5		%	31.6		%	29.7		%

Coverage Ratios
Recurring EBITDA⁽¹⁾ (TTM) / Interest	5.6			5.0			4.9			4.8			4.5
Recurring EBITDA⁽¹⁾(TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	5.5			4.8			4.8			4.6			4.4

Maturities / Principal Amortization Next Five Years	2021			2022			2023			2024			2025
Mortgage term loans
Maturities	$	—		$	82,155		$	185,619		$	315,330		$	50,529
Principal amortization	30,083			61,411			60,788			57,344			53,933
Collateralized term loan	4,621			10,000			25,016			—			—
Line of credit and other debt	—			1,509			—			—			190,332
Preferred Equity – Sun NG Resorts – mandatorily redeemable	—			—			—			33,428			1,821
Preferred OP units – mandatorily redeemable	—			—			—			27,373			—
Total	$	34,704		$	155,075		$	271,423		$	433,475		$	296,615

Weighted average rate of maturities	—		%	4.46		%	4.08		%	4.47		%	4.04		%

Same Community
⁽²⁾

(amounts in thousands)


	Three Months Ended
	Total Same Community								MH								RV
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding transient)	$	219,693	$	205,449	$	14,244	6.9	%	$	174,158	$	166,473	$	7,685	4.6	%	$	45,535	$	38,976	$	6,559	16.8	%
Real property – transient	51,481		21,510		29,971		139.3	%	362		173		189		109.2	%	51,119		21,337		29,782		139.6	%
Other	10,798		3,219		7,579		235.4	%	4,869		1,130		3,739		330.9	%	5,929		2,089		3,840		183.8	%
Total Operating	281,972		230,178		51,794		22.5	%	179,389		167,776		11,613		6.9	%	102,583		62,402		40,181		64.4	%
Expense
Property Operating^(9)(10)	87,459		70,159		17,300		24.7	%	44,984		40,226		4,758		11.8	%	42,475		29,933		12,542		41.9	%
Real Property NOI⁽¹⁾	$	194,513	$	160,019	$	34,494	21.6	%	$	134,405	$	127,550	$	6,855	5.4	%	$	60,108	$	32,469	$	27,639	85.1	%

	Six Months Ended
	Total Same Community								MH										RV
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change			% Change			June 30, 2021		June 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding Transient)	$	435,054	$	410,667	$	24,387	5.9	%	$	346,900	$	331,301	$	15,599		4.7		%	$	88,154	$	79,366	$	8,788	11.1	%
Real property – transient	76,883		49,869		27,014		54.2	%	962		1,101		(139		)	(12.6	)	%	75,921		48,768		27,153		55.7	%
Other	17,793		9,071		8,722		96.2	%	9,695		4,940		4,755			96.3		%	8,098		4,131		3,967		96.0	%
Total Operating	529,730		469,607		60,123		12.8	%	357,557		337,342		20,215			6.0		%	172,173		132,265		39,908		30.2	%
Expense
Property Operating^(9)(10)	159,973		138,879		21,094		15.2	%	87,989		80,911		7,078			8.7		%	71,984		57,968		14,016		24.2	%
Real Property NOI⁽¹⁾	$	369,757	$	330,728	$	39,029	11.8	%	$	269,568	$	256,431	$	13,137		5.1		%	$	100,189	$	74,297	$	25,892	34.8	%

Same Community
⁽²⁾
(continued)

	As of
	June 30, 2021			June 30, 2020			Change				% Change
Other Information
Number of properties	405			405			—

MH occupancy	97.4		%
RV occupancy	100.0		%
MH & RV blended occupancy⁽³⁾	98.0		%

Adjusted MH occupancy⁽³⁾	98.5		%
Adjusted RV occupancy⁽³⁾	100.0		%
Adjusted MH & RV blended occupancy⁽³⁾	98.8		%	97.2		%	1.6			%

Sites available for development	7,246			7,553			(307		)

Monthly base rent per site – MH	$	601		$	583		$	18			3.1%⁽¹²⁾
Monthly base rent per site – RV⁽¹¹⁾	$	527		$	504		$	23			4.7%⁽¹²⁾
Monthly base rent per site – Total⁽¹¹⁾	$	584		$	565		$	19			3.3%⁽¹²⁾

Marina Summary

(amounts in
thousands except for statistical data)


	Three Months Ended		Six Months Ended
	June 30, 2021		June 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	61,914	$	108,020
Real property – transient	4,257		5,125
Other	3,671		5,319
Total Operating	69,842		118,464
Expenses
Property Operating^(a)	28,246		51,821
Real Property NOI	41,596		66,643
Service, retail, dining and entertainment
Service, retail, dining and entertainment revenue	82,238		126,592
Service, retail, dining and entertainment expense	61,017		99,026
Service, Retail, Dining and Entertainment NOI	21,221		27,566

Marina NOI	$	62,817	$	94,209

Other Information – Marinas			June 30, 2021
Number of properties^(b)			114
Total wet slips and dry storage			41,275

^(a) Marina results net $3.7 million and $6.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

^(b) Marina properties comprised of eight properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary
⁽
¹³⁾

(amounts in thousands except for statistical data)


	Three Months Ended		Six Months Ended
	June 30, 2021		June 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	8,522	$	15,820
Real property – transient	21,259		27,525
Other income	2,767		3,122
Total Operating	32,548		46,467
Expenses
Property Operating^(a)	15,915		25,475
Real Property NOI	$	16,633	$	20,992

Other Information – MH and RVs			June 30, 2021
Number of properties			50
Occupied sites			5,474
Developed sites			6,322
Occupancy %			86.6		%
Transient sites			8,122

^(a) MH and RV Acquisitions and Other results net $1.1 million and $2.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and six months ended June 30, 2021.

Home Sales Summary

(amounts in thousands except for *)


	Three Months Ended											Six Months Ended
	June 30, 2021			June 30, 2020			Change			% Change		June 30, 2021			June 30, 2020			Change			% Change
Financial Information
New Homes
New home sales	$	34,761		$	19,206		$	15,555		81.0	%	$	57,733		$	34,802		$	22,931		65.9	%
New home cost of sales	28,269			15,707			12,562			80.0	%	46,943			28,317			18,626			65.8	%
Gross Profit – new homes	6,492			3,499			2,993			85.5	%	10,790			6,485			4,305			66.4	%
Gross margin % – new homes	18.7		%	18.2		%	0.5		%			18.7		%	18.6		%	0.1		%
Average selling price – new homes*	$	153,132		$	137,186		$	15,946		11.6	%	$	153,545		$	134,371		$	19,174		14.3	%

Pre-owned Homes
Pre-owned home sales	$	47,087		$	19,324		$	27,763		143.7	%	$	76,314		$	44,315		$	31,999		72.2	%
Pre-owned home cost of sales	25,945			13,474			12,471			92.6	%	44,529			30,896			13,633			44.1	%
Gross Profit – pre-owned homes	21,142			5,850			15,292			261.4	%	31,785			13,419			18,366			136.9	%
Gross margin % – pre-owned homes	44.9		%	30.3		%	14.6		%			41.7		%	30.3		%	11.4		%
Average selling price – pre-owned homes*	$	50,577		$	41,028		$	9,549		23.3	%	$	47,195		$	39,744		$	7,451		18.7	%

Total Home Sales
Revenue from home sales	$	81,848		$	38,530		$	43,318		112.4	%	$	134,047		$	79,117		$	54,930		69.4	%
Cost of home sales	54,214			29,181			25,033			85.8	%	91,472			59,213			32,259			54.5	%
Home selling expenses	4,549			2,870			1,679			58.5	%	8,881			6,877			2,004			29.1	%
Home Sales NOI⁽¹⁾	$	23,085		$	6,479		$	16,606		256.3	%	$	33,694		$	13,027		$	20,667		158.6	%

Statistical Information
New home sales volume*	227			140			87			62.1	%	376			259			117			45.2	%
Pre-owned home sales volume*	931			471			460			97.7	%	1,617			1,115			502			45.0	%
Total home sales volume*	1,158			611			547			89.5	%	1,993			1,374			619			45.1	%

R
ental Program Summary

(amounts in thousands except for *)


	Three Months Ended								Six Months Ended
	June 30, 2021		June 30, 2020		Change		% Change		June 30, 2021		June 30, 2020		Change			% Change
Financial Information
Revenues
Home rent	$	17,060	$	14,968	$	2,092	14.0	%	$	34,082	$	30,436	$	3,646		12.0		%
Site rent	18,649		18,591		58		0.3	%	37,766		36,598		1,168			3.2		%
Total	35,709		33,559		2,150		6.4	%	71,848		67,034		4,814			7.2		%

Expenses
Rental Program operating and maintenance	4,561		4,425		136		3.1	%	9,785		9,248		537			5.8		%
Rental Program NOI⁽¹⁾	$	31,148	$	29,134	$	2,014	6.9	%	$	62,063	$	57,786	$	4,277		7.4		%

Other Information
Number of sold rental homes*	281		122		159		130.3	%	492		356		136			38.2		%
Number of occupied rentals, end of period*									10,951		11,785		(834		)	(7.1	)	%
Investment in occupied rental homes, end of period									$	601,798	$	621,327	$	(19,529	)	(3.1	)	%
Weighted average monthly rental rate, end of period*									$	1,076	$	1,018	$	58		5.7		%

Rental Program NOI is included in Real Property NOI. Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company’s operations.

MH and RV Property Summary


	6/30/2021			3/31/2021		12/31/2020		9/30/2020		6/30/2020
FLORIDA
Properties	129			128		128		127		125
MH & Annual RV Developed sites⁽¹⁴⁾	40,171			40,011		39,803		39,517		39,241
Occupied MH & Annual RV⁽¹⁴⁾	39,402			39,283		39,063		38,743		38,453
MH & Annual RV Occupancy %⁽¹⁴⁾	98.1	%		98.2	%	98.1	%	98.0	%	98.0	%
Transient RV sites	5,895			5,823		6,011		5,993		5,547
Sites for development	1,414			1,497		1,497		1,427		1,427
MICHIGAN
Properties	75			74		74		74		72
MH & Annual RV Developed sites⁽¹⁴⁾	29,600			29,092		29,086		29,086		27,901
Occupied MH & Annual RV⁽¹⁴⁾	28,671			28,145		28,109		28,033		27,191
MH & Annual RV Occupancy %⁽¹⁴⁾	96.9	%		96.7	%	96.6	%	96.4	%	97.5	%
Transient RV sites	509			541		546		546		572
Sites for development	1,182			1,182		1,182		1,182		1,182
CALIFORNIA
Properties	36			36		35		34		32
MH & Annual RV Developed sites⁽¹⁴⁾	6,736			6,734		6,675		6,372		6,364
Occupied MH & Annual RV⁽¹⁴⁾	6,613			6,609		6,602		6,290		6,272
MH & Annual RV Occupancy %⁽¹⁴⁾	98.2	%		98.1	%	98.9	%	98.7	%	98.6	%
Transient RV sites	2,416			2,418		2,231		2,236		1,978
Sites for development	127			127		373		373		264
TEXAS
Properties	25			24		24		24		23
MH & Annual RV Developed sites⁽¹⁴⁾	7,947			7,928		7,766		7,659		7,641
Occupied MH & Annual RV⁽¹⁴⁾	7,731			7,671		7,572		7,427		7,289
MH & Annual RV Occupancy %⁽¹⁴⁾	97.3	%		96.8	%	97.5	%	97.0	%	95.4	%
Transient RV sites	1,835			1,773		1,810		1,917		1,590
Sites for development	1,194			1,275		1,378		1,378		565
ONTARIO, CANADA
Properties	16			16		15		15		15
MH & Annual RV Developed sites⁽¹⁴⁾	4,302			4,199		4,090		4,067		3,980
Occupied MH & Annual RV⁽¹⁴⁾	4,302			4,199		4,090		4,067		3,980
MH & Annual RV Occupancy %⁽¹⁴⁾	100.0	%		100.0	%	100.0	%	100.0	%	100.0	%
Transient RV sites	870			964		966		920		1,007
Sites for development	1,525			1,525		1,525		1,593		1,593
CONNECTICUT
Properties	16			16		16		16		16
MH & Annual RV Developed sites⁽¹⁴⁾	1,901			1,897		1,897		1,898		1,898
Occupied MH & Annual RV⁽¹⁴⁾	1,757			1,746		1,739		1,736		1,735
MH & Annual RV Occupancy %⁽¹⁴⁾	92.4	%		92.0	%	91.7	%	91.5	%	91.4	%
Transient RV sites	104			108		108		107		107
Sites for development	—			—		—		—		—
ARIZONA
Properties	14			14		14		13		13
MH & Annual RV Developed sites⁽¹⁴⁾	4,401			4,391		4,323		4,274		4,259
Occupied MH & Annual RV⁽¹⁴⁾	4,116			4,101		4,030		3,957		3,932
MH & Annual RV Occupancy %⁽¹⁴⁾	93.5	%		93.4	%	93.2	%	92.6	%	92.3	%
Transient RV sites	1,260			1,270		1,337		1,386		1,401
Sites for development	—			—		—		—		—


MAINE
Properties	13			13		13		7		7
MH & Annual RV Developed sites⁽¹⁴⁾	2,204			2,190		2,190		1,092		1,074
Occupied MH & Annual RV⁽¹⁴⁾	2,127			2,119		2,121		1,089		1,069
MH & Annual RV Occupancy %⁽¹⁴⁾	96.5	%		96.8	%	96.8	%	99.7	%	99.5	%
Transient RV sites	792			805		805		819		837
Sites for development	30			30		30		30		30
INDIANA
Properties	12			12		12		11		11
MH & Annual RV Developed sites⁽¹⁴⁾	3,087			3,087		3,087		3,087		3,087
Occupied MH & Annual RV⁽¹⁴⁾	2,970			2,961		2,950		2,957		2,961
MH & Annual RV Occupancy %⁽¹⁴⁾	96.2	%		95.9	%	95.6	%	95.8	%	95.9	%
Transient RV sites	1,089			1,089		1,089		534		534
Sites for development	277			277		277		277		277
COLORADO
Properties	10			10		10		10		10
MH & Annual RV Developed sites⁽¹⁴⁾	2,453			2,453		2,453		2,453		2,441
Occupied MH & Annual RV⁽¹⁴⁾	2,420			2,395		2,380		2,365		2,327
MH & Annual RV Occupancy %⁽¹⁴⁾	98.7	%		97.6	%	97.0	%	96.4	%	95.3	%
Transient RV sites	987			962		962		930		574
Sites for development	1,225			1,250		1,250		1,282		1,566
NEW HAMPSHIRE
Properties	10			10		10		10		10
MH & Annual RV Developed sites⁽¹⁴⁾	1,777			1,776		1,777		1,833		1,827
Occupied MH & Annual RV⁽¹⁴⁾	1,769			1,769		1,767		1,822		1,816
MH & Annual RV Occupancy %⁽¹⁴⁾	99.5	%		99.6	%	99.4	%	99.4	%	99.4	%
Transient RV sites	602			456		460		404		410
Sites for development	151			151		151		151		151
NEW YORK
Properties	10			10		9		9		9
MH & Annual RV Developed sites⁽¹⁴⁾	1,457			1,452		1,419		1,414		1,403
Occupied MH & Annual RV⁽¹⁴⁾	1,428			1,415		1,380		1,371		1,358
MH & Annual RV Occupancy %⁽¹⁴⁾	98.0	%		97.5	%	97.3	%	97.0	%	96.8	%
Transient RV sites	1,684			1,689		1,422		900		911
Sites for development	371			371		371		371		371
OHIO
Properties	9			9		9		9		9
MH & Annual RV Developed sites⁽¹⁴⁾	2,797			2,797		2,790		2,790		2,778
Occupied MH & Annual RV⁽¹⁴⁾	2,770			2,760		2,755		2,758		2,736
MH & Annual RV Occupancy %⁽¹⁴⁾	99.0	%		98.7	%	98.7	%	98.9	%	98.5	%
Transient RV sites	128			128		135		135		147
Sites for development	22			22		22		22		22
OTHER STATES
Properties	80			80		77		73		74
MH & Annual RV Developed sites⁽¹⁴⁾	17,422			17,310		16,896		16,484		16,578
Occupied MH & Annual RV⁽¹⁴⁾	16,934			16,796		16,394		15,977		16,046
MH & Annual RV Occupancy %⁽¹⁴⁾	97.2	%		97.0	%	97.0	%	96.9	%	96.8	%
Transient RV sites	8,861			8,269		7,161		6,901		6,745
Sites for development	1,925			1,969		1,969		2,044		2,294

TOTAL – MH AND RV PORTFOLIO
Properties	455			452		446		432		426
MH & Annual RV Developed sites⁽¹⁴⁾	126,255			125,317		124,252		122,026		120,472
Occupied MH & Annual RV⁽¹⁴⁾	123,010			121,969		120,952		118,592		117,165
MH & Annual RV Occupancy %⁽¹⁴⁾	97.4	%	⁽¹⁵⁾	97.3	%	97.3	%	97.2	%	97.3	%
Transient RV sites	27,032			26,295		25,043		23,728		22,360
Sites for development⁽¹⁶⁾	9,443			9,676		10,025		10,130		9,742
% Communities age restricted	32.5	%		32.7	%	33.2	%	33.6	%	34.0	%

Marina Property Summary ^(a)


	6/30/2021	03/31/2021	12/31/2020
FLORIDA
Properties	18	16	14
Total wet slips and dry storage spaces	4,186	3,837	3,585
CONNECTICUT
Properties	11	11	11
Total wet slips and dry storage spaces	3,262	3,262	3,262
RHODE ISLAND
Properties	11	11	11
Total wet slips and dry storage spaces	3,207	2,829	2,829
MASSACHUSETTS
Properties	9	9	7
Total wet slips and dry storage spaces	2,650	2,650	2,223
NEW YORK
Properties	8	8	8
Total wet slips and dry storage spaces	2,629	2,629	2,629
MARYLAND
Properties	8	8	8
Total wet slips and dry storage spaces	2,110	2,110	2,110
OTHER STATES
Properties	49	47	47
Total wet slips and dry storage spaces	23,231	22,693	22,693
TOTAL – MARINA PORTFOLIO
Properties	114	110	106
Total wet slips and dry storage spaces	41,275	40,010	39,331

^(a) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability.

Capital Improvements, Development and
Acquisitions

(amounts in thousands except for *)

	Recurring Capital Expenditures Average / MH & RV Site*		Recurring Capital Expenditures Average / Marina Site*		Recurring Capital Expenditures – MH / RV ⁽¹⁷⁾		Recurring Capital Expenditures – Marina ⁽¹⁷⁾		Lot Modifications ⁽¹⁸⁾		Acquisitions ⁽¹⁹⁾		Expansion and Development ⁽²⁰⁾		Growth Projects ⁽²¹⁾
YTD 2021	$	178	$	149	$	21,697	$	5,909	$	16,945	$	692,344	$	90,380	$	36,357
2020	$	265	N/A		$	31,398	$	2,074	$	29,789	$	3,105,296	$	248,146	$	28,315
2019	$	345	N/A		$	30,382	N/A		$	31,135	$	930,668	$	281,808	$	9,638

Operating Statistics for MH and Annual RVs

Locations	Resident Move-outs	Net Leased Sites ⁽⁵⁾	New Home Sales	Pre-owned Home Sales	Brokered Re-sales
Florida	1,251	319	116	126	972
Michigan	241	113	29	807	124
Ontario, Canada	471	121	43	5	221
Texas	177	159	44	213	39
Arizona	60	86	15	23	132
Indiana	34	20	5	147	9
Ohio	58	15	1	59	9
California	68	11	14	4	82
Colorado	1	40	34	16	21
Connecticut	19	18	20	2	25
New York	87	24	6	1	7
New Hampshire	—	2	4	—	22
Maine	73	6	6	6	1
Other states	702	163	39	208	110
Six Months Ended June 30, 2021	3,242	1,097	376	1,617	1,774

Total For Year Ended	Resident Move-outs	Net Leased Sites ⁽⁵⁾	New Home Sales	Pre-owned Home Sales	Brokered Re-sales
2020	5,365	2,505	570	2,296	2,557
2019	4,139	2,674	571	2,868	2,231

Percentage Trends	Resident Move-outs		Resident Re-sales
2021 TTM	2.1	%	8.1	%
2020	3.3	%	6.9	%
2019	2.6	%	6.6	%

Footnotes and Definitions

(1) Investors in and analysts following the real estate industry utilize funds from operations (“FFO”), net operating income (“NOI”), and earnings before interest, tax, depreciation and amortization (“EBITDA”) as supplemental performance measures. The Company believes that FFO, NOI, and EBITDA are appropriate measures given their wide use by and relevance to investors and analysts. Additionally, FFO, NOI, and EBITDA are commonly used in various ratios, pricing multiples, yields and returns and valuation calculations used to measure financial position, performance and value.

FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles (“GAAP”) depreciation and amortization of real estate assets.
NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.
EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.

FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating property, plus real estate related depreciation and amortization, real estate related impairments, and after adjustments for nonconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company’s operating performance. By excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing perspective not readily apparent from GAAP net income (loss). Management believes the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. The Company also uses FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of our core business (“Core FFO”). The Company believes that Core FFO provides enhanced comparability for investor evaluations of period-over-period results.

The Company believes that GAAP net income (loss) is the most directly comparable measure to FFO. The principal limitation of FFO is that it does not replace GAAP net income (loss) as a performance measure or GAAP cash flow from operations as a liquidity measure. Because FFO excludes significant economic components of GAAP net income (loss) including depreciation and amortization, FFO should be used as a supplement to GAAP net income (loss) and not as an alternative to it. Further, FFO is not intended as a measure of a REIT’s ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO is calculated in accordance with the Company’s interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that interpret the NAREIT definition differently.

NOI is derived from revenues minus property operating expenses and real estate taxes. NOI is a non-GAAP financial measure that the Company believes is helpful to investors as a supplemental measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. The Company uses NOI as a key measure when evaluating performance and growth of particular properties and / or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense and non-property specific expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.

The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company’s financial performance or GAAP cash flow from operating activities as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation, and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level.

EBITDA as defined by NAREIT (referred to as “EBITDAre“) is calculated as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus or minus losses or gains on the disposition of depreciated property (including losses or gains on change of control), plus impairment write-downs of depreciated property and of investments in nonconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of nonconsolidated affiliates. EBITDAre is a non-GAAP financial measure that the Company uses to evaluate its ability to incur and service debt, fund dividends and other cash needs and cover fixed costs. Investors utilize EBITDAre as a supplemental measure to evaluate and compare investment quality and enterprise value of REITs. The Company also uses EBITDAre excluding certain gain and loss items that management considers unrelated to measurement of the Company’s performance on a basis that is independent of capital structure (“Recurring EBITDA”).

The Company believes that GAAP net income (loss) is the most directly comparable measure to EBITDAre. EBITDAre is not intended to be used as a measure of the Company’s cash generated by operations or its dividend-paying capacity, and should therefore not replace GAAP net income (loss) as an indication of the Company’s financial performance or GAAP cash flow from operating, investing and financing activities as measures of liquidity.

(2) Same Community results reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at 2021 average exchange rates.

(3) The MH and RV blended occupancy is derived from 119,933 developed sites, of which 117,536 were occupied. The adjusted MH and RV blended occupancy percentage for 2020 has been adjusted to reflect incremental period-over-period growth from newly rented expansion sites and the conversion of transient RV sites to annual RV sites. The adjusted MH and RV blended occupancy percentage for 2021 is derived from 118,907 developed sites, of which 117,536 were occupied. The number of developed sites excludes RV transient sites and over 1,000 recently completed but vacant MH expansion sites.

(4) The effect of certain anti-dilutive convertible securities is excluded from these items.

(5) Revenue producing site gains do not include occupied sites acquired during that year.

(6) Other expense, net was as follows (in thousands):

	Three Months Ended						Six Months End ed
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Foreign currency remeasurement income / (loss)	$	181		$	(195	)	$	159		$	(415	)
Contingent consideration expense	(72		)	(84		)	(143		)	(166		)
Long term lease termination expense	—			(273		)	—			(273		)
GTSC repair reserve	(144		)	(269		)	(525		)	(939		)
Non-cash lease amortization expense	(625		)	—			(1,250		)	—
Other expenses, net	$	(660	)	$	(821	)	$	(1,759	)	$	(1,793	)

(7) Other acquisition related costs represent the expenses incurred to bring recently acquired properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy. These costs also include nonrecurring integration expenses associated with a new acquisition.

(8) Line of credit and other debt includes borrowings under the Company’s $2.0 billion New Credit Facility and a $12.0 million MH floor plan facility. The effective interest rate on the MH floor plan facility was 7.0 percent for the quarters ended June 30 and March 31, 2021, and 6.0 percent for the quarters ended December 31, September 30 and June 30, 2020. However, the Company pays no interest if the floor plan balance is repaid within 60 days.

(9) Same Community results net $16.8 million and $14.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the three months ended June 30, 2021 and 2020, respectively. Same Community results net $33.2 million and $29.1 million of utility revenue against the related utility expense in property operating and maintenance expense for the six months ended June 30, 2021 and 2020, respectively.

(10) Same Community supplies and repair expense excludes $0.5 million and $0.9 million for the three and six months ended June 30, 2020, respectively, of expenses incurred for recently acquired properties to bring the properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy.

(11) Monthly base rent per site pertains to annual RV sites and excludes transient RV sites.

(12) Calculated using actual results without rounding.

(13) MH and RV acquisitions and other is comprised of eight properties acquired and five properties that the Company has an interest in, but does not operate in 2021, 23 properties acquired in 2020, two Florida Keys properties that require redevelopment as a result of damage sustained from Hurricane Irma in 2017, seven recently opened ground-up developments, one property undergoing redevelopment, four properties previously classified as held for sale and other miscellaneous transactions and activity.

(14) Includes MH and annual RV sites, and excludes transient RV sites, as applicable.

(15) As of June 30, 2021, total portfolio MH occupancy was 96.7 percent inclusive of the impact of nearly 1,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(16) Total sites for development were comprised of approximately 77.9 percent for expansion, 19.8 percent for greenfield development and 2.3 percent for redevelopment.

(17) Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities, resorts and marinas. Recurring capital expenditures at our MH and RV properties include items such as: major road, driveway, pool improvements; clubhouse renovations; adding or replacing street lights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at our marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.

(18) Lot modification capital expenditures are MH expenditures necessary to improve the asset quality of the community. These costs are incurred when an existing older home moves out, and the site is prepared for a new home, more often than not, a multi-sectional home. These activities, which are mandated by strict manufacturer’s installation requirements and state building code, include items such as new foundations, driveways, and utility upgrades.

(19) Capital expenditures related to acquisitions represent the purchase price of existing operating properties (including marinas) and land parcels to develop expansions or new properties. These costs for the six months ended June 30, 2021 include $70.7 million of capital improvements identified during due diligence that are necessary to bring the communities, resorts and marinas to the Company’s operating standards. For the years ended December 31, 2020 and 2019, these costs were $40.6 million and $50.7 million, respectively. These include items such as: upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovation including larger decks, heaters, and furniture; new maintenance facilities; and new signage including main signs and internal road signs. These are considered acquisition costs and although identified during due diligence, often require 24 to 36 months after closing to complete.

(20) Expansion and development expenditures consist primarily of construction costs and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at our MH communities and RV resorts.

(21) Growth projects consist of revenue generating or expense reducing activities at MH communities, RV resorts and marinas. This includes, but is not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.

Certain financial information has been revised to reflect reclassifications in prior periods to conform to current period presentation.

Attachment

Exhibit 99.1 Press Release and Supplemental Package 2021.06.30

July 26, 2021 4:38 pm

Biogen and Ionis report positive topline clinical data on investigational Alzheimer’s disease treatment at AAIC

– Phase 1b study of BIIB080/IONIS-MAPT Rx met primary objective of safety and tolerability

– Study demonstrated durable, robust, time and dose dependent lowering of tau protein in cerebrospinal fluid

PR Newswire

CAMBRIDGE, Mass. and CARLSBAD, Calif., July 26, 2021 /PRNewswire/ — Biogen Inc. (Nasdaq: BIIB) and Ionis Pharmaceuticals, Inc. (Nasdaq: IONS) announced today that topline data from a Phase 1b placebo-controlled, multiple ascending dose clinical study showed that BIIB080/IONIS-MAPT_Rx met its primary objective of safety and tolerability in patients with mild Alzheimer’s disease. The study demonstrated robust time and dose dependent lowering of tau protein in cerebrospinal fluid (CSF) over the three-month treatment period and sustained reductions during the six-month post-treatment period.

In patients receiving BIIB080, there were dose-dependent decreases in the concentration of total-tau in CSF eight weeks post-last dose (Day 141) with a mean percentage reduction of 30 percent, 40 percent and 49 percent in the low, medium and high dose groups treated every four-weeks, respectively, and 42 percent in the group treated every 12 weeks. Total-tau in the CSF continued to decline 16 weeks post-last dose in patients treated with BIIB080 in the high dose four-week and 12-week dose groups, showing a 55 percent and 49 percent mean reduction from baseline, respectively. CSF was not collected 16 weeks post-last dose in the low and medium four-week dose groups. There were similar dose-dependent decreases in the levels of phosphorylated tau. All participants (n=46) completed the Multiple Ascending Dose (MAD) period and 43 participants completed the Post-Treatment (PT) period (3 participants voluntarily withdrew). These data were presented in a poster session at the 2021 Alzheimer’s Association International Conference (AAIC) held virtually and in Denver, Colo., July 26 – 30.

“There is clearly an urgent need to develop and deliver effective treatments for Alzheimer’s disease, a devastating disorder for which there currently are limited therapeutic options. We are encouraged by the topline results from this study of BIIB080, which demonstrate the potential of Ionis’ antisense technology to successfully target what we believe is a root cause of Alzheimer’s disease,” said C. Frank Bennett, Ph.D., Ionis’ chief scientific officer and franchise leader for neurological programs. Dr. Bennett added, “These study results support further investigation of BIIB080 for the treatment of Alzheimer’s disease and suggest that antisense-mediated suppression of tau protein may be a feasible therapeutic approach for other tauopathies.”

“Biogen is deeply committed to the development of novel treatments for patients with Alzheimer’s disease. This commitment extends across multiple modalities, including antisense oligonucleotides, as with BIIB080,” said Alfred Sandrock, Jr., M.D., Ph.D., Head of Research and Development at Biogen. “Biogen is encouraged by the results of this trial, and we look forward to our continued research in future clinical studies with this promising investigational asset.”

Alzheimer’s disease is a progressive neurodegenerative disorder characterized by cognitive and functional decline resulting in significant disability. Until recently, treatment was limited to management of symptoms. BIIB080 is an investigational antisense therapy designed to target microtubule-associated protein tau (MAPT) mRNA and prevent production of tau protein. Growing evidence suggests that aggregated, hyperphosphorylated tau may be a key driver of neurodegeneration in Alzheimer’s disease as well as other tauopathies including progressive supranuclear palsy and frontotemporal degeneration. In preclinical studies in MAPT transgenic mice, MAPT-targeted antisense treatment demonstrated robust tau-lowering in CNS tissues and prevention and reversal of disease.

The primary objective of the Phase 1b first-in-human study was to assess safety and tolerability of multiple intrathecal (IT) bolus administrations of BIIB080. The study was divided into two parts: Part 1, a MAD study of 46 patients with mild Alzheimer’s disease comprising a three-month Treatment Evaluation Period and a six-month PT period; Part 2, an open label long-term extension study comprising a 12-month Treatment Evaluation Period and a four- or six-month PT period. Four ascending dose cohorts were enrolled sequentially and randomized 3:1 to IT bolus administrations of BIIB080 or placebo. Patients aged 50-74 years with mild Alzheimer’s disease and confirmed amyloid positivity (via CSF) at screening were considered eligible. Part 1 is now complete; Part 2 is currently ongoing (EudraCT: 2016-002713-22; NCT03186989).

The characteristics of patients at baseline were representative of relatively younger, mild Alzheimer’s disease patients and were generally similar across trial groups. All adverse events were mild to moderate in severity with no serious adverse events occurring in any patients that received BIIB080. There were no deaths, dose-limiting adverse events or dosing discontinuations.

About Ionis’ Neurology Franchise

The Ionis neurology franchise addresses all major brain regions and central nervous system cell types and currently has three Phase 3 studies ongoing with 11 medicines in clinical development, three of which are wholly owned. Ionis is leading the way in treating root causes of many neurological diseases and developing antisense medicines for common diseases like Alzheimer’s and Parkinson’s as well as rare diseases like amyotrophic lateral sclerosis (ALS) and Alexander disease. Ionis’ marketed neurological disease medicines include SPINRAZA^®, a global foundation of care for spinal muscular atrophy (SMA), commercialized by Biogen, and TEGSEDI^®, the first and only self-administered, subcutaneous treatment for the polyneuropathy of hereditary ATTR amyloidosis in adults.

About Biogen

At Biogen, our mission is clear: we are pioneers in neuroscience. Biogen discovers, develops and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases as well as related therapeutic adjacencies. One of the world’s first global biotechnology companies, Biogen was founded in 1978 by Charles Weissmann, Heinz Schaller, Kenneth Murray and Nobel Prize winners Walter Gilbert and Phillip Sharp. Today Biogen has the leading portfolio of medicines to treat multiple sclerosis, has introduced the first approved treatment for spinal muscular atrophy, commercializes biosimilars of advanced biologics and is focused on advancing research programs in multiple sclerosis and neuroimmunology, Alzheimer’s disease and dementia, neuromuscular disorders, movement disorders, ophthalmology, neuropsychiatry, immunology, acute neurology and neuropathic pain.

We routinely post information that may be important to investors on our website at www.biogen.com. Follow us on social media – Twitter, LinkedIn, Facebook, YouTube.

Biogen Safe Harbor Statement

This news release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, relating to the potential clinical effects of BIIB080; the potential benefits, safety and efficacy of BIIB080; the results of the Phase 1b study of BIIB080; the clinical development program for BIIB080; the identification and treatment of Alzheimer’s disease; the potential of Biogen’s commercial business and pipeline programs, including BIIB080; the anticipated benefits and potential of Biogen’s collaboration arrangements with Ionis; and risks and uncertainties associated with drug development and commercialization. These forward-looking statements may be accompanied by such words as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “potential,” “possible,” “prospect,” “will,” “would” and other words and terms of similar meaning. Drug development and commercialization involve a high degree of risk, and only a small number of research and development programs result in commercialization of a product. Results in early-stage clinical trials may not be indicative of full results or results from later stage or larger scale clinical trials and do not ensure regulatory approval. You should not place undue reliance on these statements or the scientific data presented.

These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including unexpected concerns that may arise from additional data, analysis or results obtained during clinical trials; the occurrence of adverse safety events; risks of unexpected costs or delays; the risk of other unexpected hurdles; uncertainty of success in the development and potential commercialization of BIIB080; failure to protect and enforce Biogen’s data, intellectual property and other proprietary rights and uncertainties relating to intellectual property claims and challenges; product liability claims; third party collaboration risks; the direct and indirect impacts of the ongoing COVID-19 pandemic on Biogen’s business, results of operations and financial condition; and any other risks and uncertainties that are described in other reports Biogen has filed with the U.S. Securities and Exchange Commission. These statements are based on Biogen’s current beliefs and expectations and speak only as of the date of this news release. Biogen does not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

About Ionis Pharmaceuticals, Inc.

For more than 30 years, Ionis has been the leader in RNA-targeted therapy, pioneering new markets and changing standards of care with its novel antisense technology. Ionis currently has three marketed medicines and a premier late-stage pipeline highlighted by industry-leading neurological and cardiometabolic franchises. Our scientific innovation began and continues with the knowledge that sick people depend on us, which fuels our vision of becoming one of the most successful biotechnology companies.

To learn more about Ionis visit www.ionispharma.com and follow us on twitter @ionispharma.

Ionis’ Forward-looking Statement

This press release includes forward-looking statements regarding Ionis’ business and the therapeutic and commercial potential of Ionis’ technologies, IONIS-MAPT_Rx/BIIB080 and other products in development. Any statement describing Ionis’ goals, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, including those related to the impact COVID-19 could have on our business, and including but not limited to those related to our commercial products and the medicines in our pipeline, and particularly those inherent in the process of discovering, developing and commercializing medicines that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such medicines. Ionis’ forward-looking statements also involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements.

Although Ionis’ forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Ionis. As a result, you are cautioned not to rely on these forward-looking statements. These and other risks concerning Ionis’ programs are described in additional detail in Ionis’ annual report on Form 10-K for the year ended December 31, 2020, and the most recent Form 10-Q quarterly filing, which are on file with the SEC. Copies of these and other documents are available from the Company.

In this press release, unless the context requires otherwise, “Ionis,” “Company,” “we,” “our,” and “us” refers to Ionis Pharmaceuticals and its subsidiaries.

Ionis Pharmaceuticals^® is a trademark of Ionis Pharmaceuticals, Inc.

BIIB080 is licensed to Biogen.

View original content to download multimedia:https://www.prnewswire.com/news-releases/biogen-and-ionis-report-positive-topline-clinical-data-on-investigational-alzheimers-disease-treatment-at-aaic-301341358.html

SOURCE Ionis Pharmaceuticals, Inc.; Biogen Inc.

July 26, 2021 4:38 pm

Flotek Industries Announces Earnings Schedule For Q2 2021 Results

PR Newswire

HOUSTON, July 26, 2021 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced the Company’s schedule for releasing its second quarter 2021 results for the three months ended June 30, 2021.

In a press release to be issued after market close on Monday, August 9, 2021, Flotek will release its second quarter 2021 financial and operating results for the three months ended June 30, 2021. The Company will host its earnings conference call on Tuesday, August 10, 2021, at 8:30 a.m. CDT (9:30 a.m. EDT).

To participate in the call, participants should access the webcast on www.flotekind.com under the Investor Relations section or dial 1-844-835-9986 approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.

About Flotek
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream, and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

View original content to download multimedia:https://www.prnewswire.com/news-releases/flotek-industries-announces-earnings-schedule-for-q2-2021-results-301341249.html

SOURCE Flotek Industries, Inc.

July 26, 2021 4:36 pm

Asure Software Announces Timing of Second Quarter 2021 Financial Results

AUSTIN, Texas, July 26, 2021 (GLOBE NEWSWIRE) — Asure (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (HCM) software solutions, today announced that its financial results for the second quarter of 2021 will be released after the market close on Monday, August 9, 2021. Asure will host a conference call to discuss the results at 3:30pm CT (4:30pm ET) on the same day.

Asure Chairman and CEO Pat Goepel as well as CFO John Pence will host the conference call, followed by a question and answer session.

Date: Monday, August 9, 2021
Time: 3:30 p.m. Central time (4:30 p.m. Eastern time)
U.S. dial-in: (877) 853-5636
International dial-in: (631) 291-4544
Conference ID: 1138654
A live webcast, as well as a replay, will be available on the Company’s investor relations website at: https://investor.asuresoftware.com/events-and-presentations.

About Asure Software

Asure (Nasdaq: ASUR) sees Human Capital Management (HCM) through the lens of entrepreneurs and executives with an owner’s mentality. We help more than 80,000 small and mid-sized businesses develop their “Human Capital” to get to the next level, stay compliant, and allocate their time, money and technology toward growth. Asure HCM solution includes Asure Payroll & Tax, Asure HR, and Asure Time & Attendance. Our Asure HRServices offer ranges from online compliance tools to a fully outsourced HR department. Visit us at asuresoftware.com.

Company Contact:

Stacy Zellner, Director of Marketing
(512) 843-7567
[email protected]

Investor Contact:

Todd Waletzki, Chief of Staff
469-623-6935
[email protected]

July 26, 2021 4:34 pm

Air Lease Corporation Announces Delivery of New Airbus A321neo Aircraft to SKY

Air Lease Corporation Announces Delivery of New Airbus A321neo Aircraft to SKY

LOS ANGELES–(BUSINESS WIRE)–
Today Air Lease Corporation (NYSE: AL) announced the delivery of one new Airbus A321neo aircraft on long-term lease to SKY (Chile). This is the first Airbus A321neo to operate in Chile.

“ALC is pleased to deliver this new Airbus A321neo aircraft to SKY and be the first to introduce the aircraft to the airline and country of Chile,” said Matthew Stevens, Assistant Vice President of Marketing at Air Lease Corporation. “It is a privilege to work with SKY, and we believe this next generation aircraft will positively contribute to the airline’s sustainability and fleet operations.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.

About Air Lease Corporation (NYSE: AL)

ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. ALC routinely posts information that may be important to investors in the “Investors” section of ALC’s website at www.airleasecorp.com. Investors and potential investors are encouraged to consult the ALC website regularly for important information about ALC. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.